In a strategic move aimed at boosting efficiency and achieving profitability, Lucid Motors has announced a reduction of 12% of its workforce. This decision, outlined in an internal memo, reflects the company's commitment to optimizing resources during its growth phase.
The layoffs will not impact hourly employees in manufacturing, logistics, and quality assurance roles, as stated in the memo. While the exact number of affected employees remains uncertain, estimates suggest it could be in the hundreds, given that Lucid Motors had approximately 6,800 full-time staff globally as of late 2024.
Interim CEO Marc Winterhoff expressed empathy for those leaving, acknowledging their contributions and detailing support measures such as severance packages, bonuses, and continued health benefits to assist during the transition.
This workforce adjustment coincides with the company's efforts to ramp up production and deliveries of its new Gravity SUV. Despite initial challenges related to production and quality, Lucid has successfully increased its output, having doubled its production numbers last year.
Additionally, the company is preparing to launch a more accessible mid-size electric vehicle (EV) later this year, projected to retail around $50,000. Lucid is also collaborating with Uber and Nuro to introduce a robotaxi service in San Francisco, further diversifying its market presence.
Winterhoff reassured employees that the workforce changes would not alter the company's strategic direction. Key priorities remain focused on the production of the new mid-size platform, expansion into the robotaxi sector, and ongoing development of advanced driver-assistance systems (ADAS) and software.
Lucid Motors has been operating without a permanent CEO for nearly a year following Peter Rawlinson's unexpected resignation in February 2025. Since then, the company has experienced significant turnover in its leadership, including the departure of its chief engineer.