Lucid is trimming 12% of its U.S. workforce as the luxury EV maker works to rein in costs and move closer to profitability, according to an internal memo sent to employees on Friday.
Interim CEO Marc Winterhoff informed employees that the restructuring is designed to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability.” The reductions exclude hourly production staff in manufacturing, logistics, and quality roles.
“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” Winterhoff wrote. (via Business Insider)
Lucid reported 6,800 full-time employees globally at the end of 2024, suggesting the cuts could impact hundreds of workers. The company has not disclosed an exact figure. Employees affected by the layoffs will receive severance, bonuses, continued health benefits, and transition assistance.
“Saying goodbye to colleagues is never easy,” Winterhoff added. “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.”
Layoffs Come During Key Product Ramp
The workforce reduction arrives at an important time for Lucid. The company is in the midst of scaling production of its Gravity SUV after early manufacturing and quality challenges. Despite a difficult EV market environment, Lucid managed to more than double its annual production last year, building over 18,000 vehicles.
Lucid is also preparing to launch a more affordable midsize EV later this year, expected to start at around US$50,000 — a critical step toward achieving higher-volume sales. At the same time, the automaker is expanding into new global markets and pursuing a robotaxi partnership with Uber and autonomous vehicle company Nuro in the San Francisco area.
“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.”
Third Round of Cuts Since 2023
This marks Lucid’s third formal round of layoffs since 2023. The company has posted significant net losses in recent quarters and is scheduled to release its full-year 2025 financial results next week.
Lucid has also operated without a permanent CEO for nearly a year following the abrupt departure of former chief executive Peter Rawlinson in February 2025. Executive turnover has continued since then, adding further uncertainty during a crucial growth phase.
Backed by Saudi Arabia’s Public Investment Fund, which holds a majority stake, Lucid has access to substantial capital. Still, the latest cuts highlight the urgency to control spending as it ramps production, expands globally, and pushes toward sustainable profitability.
Here is Lucid CEO Marc Winterhoff’s full memo:
Team;
Today I want to share an important business update. We have implemented a 12% reduction of our U.S. workforce, excluding hourly production employees in manufacturing, logistics, and quality. This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability. If you are receiving this message, your role is not impacted.
We are streamlining our organization so we can operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth. We will continue to evaluate our day-to-day work to ensure that our time, energy, and resources remain focused on the initiatives that drive the greatest impact. This disciplined approach to execution is a core operational imperative for Lucid.
Importantly, today’s actions do not affect our strategy. 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.
Saying goodbye to colleagues is never easy. 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. As we move through today, I ask everyone to treat one another with empathy, professionalism, and respect, recognizing the personal impact these changes have on our teammates.
To sustain and build on progress made in 2025, we must remain focused, operate with discipline, and execute with urgency. I know we are asking a great deal of our team, and I sincerely appreciate your continued commitment, resilience, and professionalism.
I will address today’s actions and answer questions during Monday’s Town Hall. As always, you may presubmit your questions on The Hub.
Warm regards,
Marc
