Lucid Motors Cuts 12% of Workforce in Profitability Push
▼ Summary
– Lucid Motors is laying off 12% of its workforce to improve operational effectiveness and pursue profitability, a move not affecting hourly manufacturing, logistics, and quality workers.
– The layoffs, likely impacting hundreds of employees, include severance and benefits for those affected, as announced in a memo from interim CEO Marc Winterhoff.
– The company is increasing production of its Gravity SUV after initial struggles and is preparing to launch a more affordable mid-size EV priced around $50,000 this year.
– Lucid Motors is also collaborating with Uber and Nuro to launch a robotaxi service in San Francisco and maintains its core strategic priorities despite the layoffs.
– The company has been without a permanent CEO for nearly a year following Peter Rawlinson’s abrupt resignation, experiencing significant executive turnover including a wrongful termination lawsuit.
In a significant move to streamline operations and enhance financial performance, Lucid Motors has announced a workforce reduction affecting 12% of its employees. This decision, detailed in an internal company memo, aims to improve operational effectiveness and better allocate resources as the electric vehicle manufacturer continues its challenging journey toward sustainable profitability. The layoffs are not expected to impact hourly workers within manufacturing, logistics, and quality teams. While the exact number of affected employees remains unspecified, the company reported having approximately 6,800 full-time global workers at the close of 2024, suggesting the cuts likely number in the hundreds.
Interim CEO Marc Winterhoff addressed the difficult decision in the memo, stating, “Saying goodbye to colleagues is never easy.” He emphasized that the company is providing a support package for those departing, which includes severance pay, bonus payments, continued health benefits, and transition assistance. This restructuring occurs during a pivotal period for Lucid, as it works to increase production and customer deliveries of its new Gravity SUV model. After initial struggles with production and quality for the Gravity, the company managed to accelerate its output, ultimately doubling its production volume last year compared to 2024.
Looking ahead, Lucid’s strategic roadmap remains packed with key initiatives. The firm is preparing to launch a more affordable mid-size electric vehicle later this year, with an anticipated price point around $50,000, which is crucial for expanding its market reach. Furthermore, Lucid is actively collaborating with Uber and the autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco area within the year. The company’s financial results for 2025 are scheduled for release next week, offering a clearer picture of its fiscal health amidst these changes.
Winterhoff reassured employees that the layoffs do not signal a shift in corporate strategy. “Our core priorities remain unchanged,” he wrote, highlighting a continued focus on starting production for the new Midsize platform. The company also remains dedicated to disciplined execution in several growth areas, including further expansion into the robotaxi market, ongoing development of its advanced driver-assistance systems (ADAS) and software, and increasing sales of both the Lucid Gravity and Lucid Air models in existing and new geographic markets.
This period of restructuring coincides with a prolonged leadership transition at Lucid. The company has operated without a permanent CEO for nearly a full year since Peter Rawlinson, who served as both chief executive and chief technical officer, resigned abruptly in February 2025. The executive suite has experienced considerable turnover since then, including the departure of its chief engineer, who filed a lawsuit against Lucid in December alleging wrongful termination and discrimination, claims the company has publicly dismissed as “absurd.”
(Source: TechCrunch)
