Lucid cuts 18% of workforce and eliminates second shift at AMP-1 factory

Lucid is making one of the largest workforce reductions in its short history, announcing plans to cut approximately 18% of its U.S. workforce while also scaling back production at its Arizona manufacturing facility.

The cutbacks were disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission on Monday, where the luxury EV maker outlined a restructuring plan aimed at reducing expenses and moving the company closer to profitability and positive cash flow.

As part of the restructuring, Lucid is eliminating the second production shift at its AMP-1 factory in Casa Grande, Arizona. The company said the changes are intended to better align production with expected demand while streamlining operations.

According to the filing, the reduction will affect full-time employees, contractors, and hourly production workers. Lucid estimates the plan will generate approximately $158 million in annual cost savings, although it expects to incur about $32 million in severance and employee transition costs. The restructuring is expected to be largely completed by the end of the third quarter.

The cuts also extend to the executive level. Chief Operating Officer Marc Winterhoff has departed the company effective immediately, with the COO position itself being eliminated.

Lucid isn’t the only EV maker facing challenging times. Just last week, Rivian announced it was cutting less than 2% of its workforce, affecting hundreds of employees in service, customer support, sales, and marketing teams. Like Lucid, Rivian said the reductions were intended to improve efficiency and support its path toward profitability. Those layoffs came just days after the company launched its highly-anticipated R2 SUV.

For Lucid, however, the scale of the cuts is considerably larger. The company has struggled to translate strong reviews and industry-leading efficiency into sustained sales growth. While the Lucid Air sedan established itself as one of the longest-range EVs on the market and the Gravity SUV recently began reaching customers, production volumes have remained low.

Lucid has relied heavily on support from Saudi Arabia’s Public Investment Fund (PIF), which remains the company’s largest shareholder. The last major cash injection came in March 2024, when Ayar Third Investment Company, an affiliate of the PIF, invested $1 billion into the automaker.

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