Lucid Group announced a reduction of approximately 18% of its U.S. workforce as part of a strategic cost-saving initiative aimed at enhancing the company’s financial position. This decision, which will affect full-time employees, contractors, and hourly production workers, is expected to yield annualized savings of around $158 million.
In addition to the workforce cuts, Lucid revealed that its Chief Operating Officer, Marc Winterhoff, is leaving the company effective immediately. The COO position itself will also be eliminated, signaling a shift in the company’s operational structure under new CEO Silvio Napoli, who took on the role on June 1. The workforce reductions follow an earlier layoff of about 12% of the U.S. workforce in February, reflecting ongoing efforts to adjust to declining market conditions and align production with demand.
A spokesperson for Lucid emphasized that these “difficult decisions” are intended to streamline operations, reduce inventory levels, and enhance competitiveness. The company anticipates incurring approximately $32 million in cash charges related to severance and benefits as a consequence of the layoffs. Additionally, Lucid will eliminate its second production shift at the AMP-1 factory in Arizona.
Lucid has experienced challenges in the evolving electric vehicle market, including slower-than-anticipated consumer adoption and adverse regulatory changes. Despite increased sales and attempts to narrow losses, the company reported a significant net loss of $2.7 billion against a revenue of $1.35 billion for 2025.
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