Lucid Motors Announces 18% Workforce Reduction as New CEO Restructures Operations

Lucid Motors is reducing its workforce by approximately 18%, affecting around 1,500 employees, just four months after eliminating 12% of its staff. The company also confirmed on Monday that it has ended the second production shift at its EV manufacturing facility in Casa Grande, Arizona.

According to the company, the restructuring is part of new CEO Silvio Napoli’s strategy to simplify Lucid’s operations, improve execution, and strengthen the company’s long-term competitiveness. The latest layoffs come as demand for electric vehicles in the U.S. continues to soften, prompting several major automakers to scale back or cancel EV programs.

Marc Winterhoff, who served as Lucid’s interim CEO for more than a year before Napoli assumed the role, has also departed the company. Although Lucid had previously stated that Winterhoff would remain as Chief Operating Officer after stepping down as interim CEO, a regulatory filing revealed that the company has eliminated the COO position.

The workforce reduction comes as Lucid prepares to launch its first mass-market electric vehicle, the Lucid Cosmos SUV, later this year. Priced below $50,000, the new model is expected to play a key role in expanding the company’s customer base and moving it closer to profitability.

Lucid is also working to establish itself in the autonomous vehicle market through a partnership with Uber and Nuro to introduce a luxury robotaxi service in San Francisco later this year. The company declined to comment on whether any ongoing projects have been suspended as part of the restructuring.

The Saudi Arabia-backed, publicly traded automaker has experienced significant executive turnover over the past two years. Longtime CEO Peter Rawlinson stepped down unexpectedly in February 2025. Chief Engineer Eric Bach was dismissed later that year and subsequently filed a wrongful termination lawsuit, which is currently pending arbitration. Earlier this month, longtime executive Emad Dlala also resigned just months after being promoted to a senior leadership position.

The latest workforce reduction affects full-time employees, contractors, and hourly production staff. Before implementing the 12% layoffs earlier this year, Lucid reported employing approximately 9,000 people worldwide at the end of 2025.

Lucid said the restructuring is intended to align production plans with expected market demand better while generating annual cost savings of roughly $158 million. The company expects the restructuring process to be completed by the third quarter of this year.

As part of the restructuring, Lucid expects to pay approximately $32 million in severance costs. According to the regulatory filing, Winterhoff will also receive severance benefits and certain security support services and retain use of his company vehicle following his departure.