Lucid Motors cuts 12% of workforce to boost efficiency

Electric vehicle manufacturer Lucid Motors is laying off 12% of its workforce, according to an internal memo. The workforce reduction is intended to improve operational effectiveness and optimize resources as the company continues to ramp up production of its Gravity SUV and pursues profitability. Hourly workers on the manufacturing, logistics, and quality teams are not affected by the layoffs. While the exact number of workers being laid off is not specified, the total is likely in the hundreds. At the end of 2024, Lucid Motors reported having 6,800 full-time employees globally.

In the internal memo, interim CEO Marc Winterhoff addressed the layoffs, noting that saying goodbye to colleagues is never easy. He stated that the company is grateful for the contributions of those impacted and is providing severance, bonuses, continued health benefits, and transition support to help them through this period. Despite the cuts, Winterhoff emphasized that the company’s direction remains intact. “Importantly, today’s actions do not affect our strategy,” Winterhoff wrote. He explained that the company’s core priorities remain unchanged, with a focus on the start of production for its mid-size platform. Lucid Motors is preparing to launch a mid-size electric vehicle that is expected to cost around $50,000.

The company is also focusing on expanding into the robotaxi market. It is collaborating with Uber and autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco area. Additionally, Lucid Motors is focusing on continued Advanced Driver Assistance Systems (ADAS) and software development, alongside growing sales of its Gravity and Air models across existing and new geographies. The company is scheduled to release its financial results for 2025 next week.

These workforce cuts occur during a period of executive transition. Lucid Motors has gone almost a full year without a permanent CEO following the resignation of Peter Rawlinson, the former chief executive and chief technical officer, on February 25, 2025. The company has also experienced executive turnover, including the departure of its chief engineer. In December, the former chief engineer sued the company for wrongful termination and discrimination. Lucid Motors has described these legal claims as absurd.

Why it matters

Lucid Motors is attempting to balance the scaling of its Gravity SUV and the development of its upcoming mid-size platform with the necessity of optimizing operational costs as it targets profitability.