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

In a strategic move aimed at enhancing operational efficiency, Lucid Motors has announced a reduction of 12% in its workforce. This decision, revealed in an internal memo obtained by TechCrunch, is part of the company's ongoing efforts to achieve profitability. The layoffs will not impact hourly employees involved in manufacturing, logistics, and quality assurance, as indicated in the communication to those who will retain their positions. While the exact number of layoffs remains undisclosed, estimates suggest that hundreds of employees may be affected. At the end of 2024, Lucid Motors employed approximately 6,800 full-time staff worldwide. Interim CEO Marc Winterhoff expressed his regret over the decision, stating, "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, bonuses, continued health benefits, and transition support to help them through this period." This workforce reduction comes at a critical time as Lucid Motors ramps up production and deliveries of its new Gravity SUV. Despite facing initial production and quality challenges, the company has successfully increased its output, doubling its production rates compared to the previous year. Additionally, Lucid Motors is preparing to introduce a more budget-friendly mid-size electric vehicle later this year, projected to retail around $50,000. The company is also collaborating with Uber and autonomous vehicle firm Nuro to launch a robotaxi service in San Francisco. The company is set to announce its financial results for 2025 next week. Winterhoff reassured employees that the restructuring will not alter the company’s strategic direction. He stated, "Importantly, today’s actions do not affect our strategy. Our core priorities remain unchanged, focusing on the production of our mid-size platform and expansion into the robotaxi market, alongside the continued development of advanced driver-assistance systems (ADAS) and software." Lucid Motors has been without a permanent CEO since February 25, 2025, when Peter Rawlinson resigned unexpectedly. The company has experienced notable executive turnover, including the departure of its chief engineer, who has filed a lawsuit against Lucid for wrongful termination and discrimination, claims the company has deemed "absurd."