Lucid Slashes Workforce by 18% Amid Market Downturn and Executive Departures
The electric vehicle manufacturer is implementing significant layoffs and eliminating the COO role as part of a restructuring effort.
Struggling electric vehicle maker Lucid Group plans to cut approximately 18 percent of its workforce, equating to about 1,600 employees based on its current headcount of 9,000. This marks the second significant reduction in staff this year, following a 12 percent cut announced just four months prior. The company stated the layoffs are part of new CEO Silvio Napoli’s strategy to "simplify the company" and "sharpen execution."
In addition to the workforce reduction, Lucid's Chief Operating Officer, Marc Winterhoff, has departed. Winterhoff had previously served as interim CEO for over a year before Napoli assumed the top position. The COO role will be permanently eliminated as part of the restructuring. The company has also ceased the second shift at its electric vehicle factory in Casa Grande, Arizona.
These measures come as the U.S. electric vehicle market has experienced a slowdown, prompting other major automakers, such as Ford, to adjust their own electric model lineups. Manufacturers like Lucid are facing pressure to lower operating costs as consumer demand shifts towards more affordable models, while intensified competition from established global automakers and newer entrants like Rivian impacts profitability.
Lucid, which named actor Timothée Chalamet as its first global brand ambassador in July of the previous year, saw substantial stock gains during the meme-stock frenzy of the pandemic. However, its share price has since dropped dramatically from its peak. The Saudi Arabian sovereign wealth fund currently holds approximately 60 percent of the company.
Over the past two years, Lucid has experienced the departure of more than a dozen senior executives. Former long-serving CEO Peter Rawlinson resigned in February 2025, and chief engineer Eric Bach was terminated in late 2025, subsequently filing a wrongful termination lawsuit.
Recent challenges for Lucid include production disruptions for its Gravity SUV in February due to supplier issues. The company suspended its 2026 production outlook last month pending a business review. Lucid had been anticipating growth driven by the Gravity SUV and a planned mid-size vehicle platform, alongside efforts to develop a robotaxi service through partnerships with Uber.
The restructuring is expected to yield annualized cost savings of approximately $158 million.