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EV maker Lucid cuts 18% of workforce
23 Jun 2026

Lucid Motors, the Saudi-backed electric vehicle (EV) maker, has announced a major job cut.

The company is laying off around 18% of its US workforce as part of a large-scale cost-reduction plan.

This is the second major layoff by Lucid in 2026. The cuts will affect full-time employees, contractors, and hourly production workers in manufacturing roles.

Job cuts expected to save $158 million annually
Financial impact

The job cuts by Lucid are expected to save the company around $158 million annually.

The company also confirmed the exit of its Chief Operating Officer (COO) Marc Winterhoff, effective immediately.

Despite earlier reports suggesting that Winterhoff would stay on in an operational role, Monday's announcement confirmed his exit and the permanent removal of the position itself.

New leadership at the helm amid restructuring
Leadership change

Silvio Napoli, who has a background in industrial manufacturing rather than the automotive sector, is now leading the company through a major restructuring effort.

This comes after Lucid's executive suite has seen considerable turbulence in recent years with several high-profile departures.

The company had around 9,000 employees globally as of December 31, 2025.

The current job cuts represent roughly 1,500 positions across full-time employees, contractors, and hourly production workers at its AMP-1 factory in Casa Grande, Arizona.

Lucid to incur cash charges of $32 million
Cost of layoffs

Lucid anticipates incurring cash charges of around $32 million related to severance, employee benefits, and transition support for affected workers.

The company also plans to eliminate the second production shift at its Arizona plant, further reducing output as it seeks to lower inventory levels.

"These are difficult decisions taken to align production with demand," a Lucid spokesperson said.

Lucid's aggressive restructuring in 2026
Workforce reduction

The latest announcement marks the second major workforce reduction Lucid has made this year.

In February, the company cut around 12% of its US workforce in a bid for profitability.

Together, the two cuts in 2026 have reduced Lucid's headcount by nearly 30% in a single year.

This aggressive restructuring is unusual even by standards of an EV sector that has been broadly contracting since the post-pandemic boom receded.

Lucid's financial performance and product roadmap
Financial outlook

Lucid lost $2.7 billion on revenue of $1.35 billion in 2025 and reported negative free cash flow of $3.8 billion for the year, about 31% larger than the previous year's figure.

Despite these challenges, Lucid remains committed to its product roadmap with plans for two upcoming mass-market electric crossovers: the Lucid Cosmos and the Lucid Earth.

The company is also exploring opportunities in the autonomous vehicle sector through partnerships with Uber and robotics company Nuro.