Lucid Motors slashes 12% of its workforce as it seeks profitability

Lucid Motors is cutting 12% of its workforce as it looks to “improve operational effectiveness and optimise our resources as we continue on our path toward profitability,” according to an internal memo that was obtained.

Hourly workers across manufacturing, logistics, and quality teams are not included in the layoffs, the memo said. The note was sent to employees who are not being impacted by the cuts. It is not clear exactly how many people will be laid off, but the number is likely in the hundreds. Lucid reported having 6,800 full-time employees globally at the end of 2024.

“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff wrote in the memo. “We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.” Lucid did not immediately respond to a request for comment.

The workforce reduction comes as Lucid is ramping up production and deliveries of its Gravity SUV. The company faced Gravity production and quality challenges in the first months of the rollout, but later increased its output and ultimately doubled its 2024 production last year.

Lucid is also preparing to introduce a more affordable midsize EV later this year, priced around $50,000. The company is also working with Uber and autonomous vehicle startup Nuro on plans to launch a robotaxi service in the San Francisco area this year. Lucid is scheduled to report its 2025 financial results next week.

“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote. “Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies.”

Lucid has now been without a permanent chief executive for nearly a year. Peter Rawlinson, the company’s former CEO and CTO, abruptly resigned on February 25, 2025. Since that departure, Lucid has seen continued turnover among senior leaders, including the exit of its chief engineer, who sued the company in December for wrongful termination and discrimination. Lucid has described those legal claims as “absurd.”