Lucid Motors is cutting roughly 18% of its U.S. workforce, a sweeping reduction that touches manufacturing, engineering, and salaried roles alike. The luxury EV startup confirmed the layoffs Monday, sending its stock down about 4.5% in midday trading.
The cuts arrive just four months after Lucid eliminated 12% of its staff in February. Company leadership frames both rounds as part of a larger restructuring designed to save $158 million annually. The latest move also includes shutting down the second production shift at its Arizona factory.
Lucid employed approximately 9,000 people globally at the end of December, according to regulatory filings. Reuters reports the new layoffs span full-time employees, contractors, and hourly workers across multiple departments.
A company spokesperson told Fast Company the reductions stem from a need to match production with actual demand, shrink inventory, and respond to deteriorating market conditions. The statement described the actions as difficult but necessary to sharpen execution and improve competitiveness.
Meanwhile, Lucid’s leadership continues to churn. Chief operating officer Marc Winterhoff, who recently served as interim CEO, has departed the company. His exit comes roughly three weeks after Silvio Napoli assumed the chief executive role at the start of June.
The restructuring signals mounting pressure on premium EV makers as broader demand softens. Lucid, long positioned as a Tesla rival with its high-end Air sedan and upcoming Gravity SUV, now confronts the same headwinds battering the entire sector.
Investors will watch whether these cuts, combined with new leadership under Napoli, can finally steer the company toward profitability. For now, the immediate focus remains on execution and whether the reduced production footprint can still support its delivery targets.
