Lucid Motors’ new CEO cuts 18% of staff to ‘simplify the company’

Lucid Motors has announced a significant reduction in its workforce, laying off 18% of its employees, which equates to approximately 1,500 jobs. This decision comes just four months after the electric vehicle manufacturer previously cut 12% of its staff. On Monday, the company disclosed its plans to eliminate the second shift of EV production at its facility located in Casa Grande, Arizona. These layoffs are part of a strategic initiative led by Lucid's new CEO, Silvio Napoli, who aims to simplify operations, enhance execution, and improve the company's competitive stance in the market. The cuts are occurring during a challenging time for the electric vehicle sector in the United States, where several major manufacturers are reassessing their electric model offerings. Marc Winterhoff, who had been serving as interim CEO until Napoli's appointment, has also departed from the company. Initially, there were expectations that Winterhoff would remain as chief operating officer, but a recent regulatory filing revealed that the COO position has been entirely eliminated. As Lucid Motors prepares for the launch of its first mass-market vehicle, the Lucid Cosmos SUV, anticipated to be priced below $50,000, the company is also striving to solidify its position in the autonomous vehicle market. Partnerships with Uber and Nuro are underway for a luxury robotaxi service set to debut in San Francisco later this year. Despite the layoffs, Lucid Motors has not indicated whether any of its ongoing projects are being canceled. The company, which is publicly traded and backed by Saudi Arabia, has seen a wave of executive departures over the past two years. Notable exits include former CEO Peter Rawlinson and Chief Engineer Eric Bach, who filed a wrongful termination lawsuit after his dismissal. The latest round of job cuts encompasses full-time employees, contractors, and hourly production workers. Prior to these layoffs, Lucid reported a global workforce of about 9,000 in early 2025. The company believes that these measures will align production with expected demand and achieve annual savings of approximately $158 million. The restructuring process is set to conclude by the third quarter of this year, with Lucid planning to allocate around $32 million for severance payments.