Lucid Motors Reduces Workforce Amid Cooling Electric Vehicle Market

The company has eliminated 1,500 jobs, or 18% of its workforce, in a bid to simplify and become more competitive.

Lucid Motors is laying off 1,500 employees, or 18% of its workforce, as part of a bid to simplify the company and become more competitive in the electric vehicle market. The cuts come as the electric vehicle market in the United States has cooled, with major automakers pulling electric models from their own product plans.

The company has also eliminated the second shift of EV production at its factory in Casa Grande, Arizona. This move is part of a bid by Lucid's new CEO, Silvio Napoli, to "simplify the company, sharpen execution, and position Lucid to become more competitive over time," the company said in a statement.

The latest cuts include full-time employees, contractors, and hourly production workers. The company reported having 9,000 employees globally at the end of 2025, prior to the 12% cut in February.

• The company expects the restructuring to complete by the third quarter of this year.
• Lucid said the layoffs will help it align "production plans with anticipated demand," and generate annualized savings of around $158 million.
• The company will pay approximately $32 million in severance.

The move comes as Lucid Motors works toward releasing its first mass-market vehicle later this year, the Lucid Cosmos SUV. The lower-cost EV is supposed to start at under $50,000 and put Lucid Motors on the path to profitability.

Lucid Motors is also attempting to become a major player in the autonomous vehicle space, partnering up with Uber and Nuro on a luxury robotaxi service slated to launch later this year in San Francisco. The company declined to comment on whether any of its programs are being mothballed.

The Saudi Arabia-owned, publicly-traded company has seen more than a dozen top executives leave over the last two years. Longtime CEO Peter Rawlinson abruptly resigned in February 2025; Chief Engineer Eric Bach was let go in late 2025, and filed a wrongful termination lawsuit shortly after (though that lawsuit has been stayed pending arbitration); and Emad Dlala, another longtime employee, resigned earlier this month just a few months after being promoted to a top role.

• The company has also eliminated the chief operating officer position entirely.
• Marc Winterhoff, who served as interim CEO for more than a year until Napoli took the job, has left the company.

The latest cuts include full-time employees, contractors, and hourly production workers. The company reported having 9,000 employees globally at the end of 2025, prior to the 12% cut in February.

The layoffs will have a significant impact on the company's workforce, but Lucid Motors is hopeful that the move will help it become more competitive in the market. Only time will tell if this strategy will pay off.