Lucid Motors is laying off 12% of its global workforce, a move the company says is necessary to improve operational effectiveness and optimise resources on its path to profitability. The cuts, announced in an internal memo obtained by TechCrunch, do not affect hourly manufacturing, logistics, and quality workers.
The layoffs come as the California-based electric vehicle manufacturer ramps up production of its Gravity SUV and prepares to launch a more affordable mid-size electric vehicle later this year.
Executive Memo Details Severance and Strategy
In the memo to remaining staff, interim CEO Marc Winterhoff acknowledged the difficulty of the decision. "Saying goodbye to colleagues is never easy," he wrote. The company is providing severance, bonus payments, continued health benefits, and transition support to affected employees.
Winterhoff emphasised that the core company strategy remains unchanged. "Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform," the memo stated. Lucid reported having 6,800 full-time employees globally at the end of 2024, meaning the layoffs likely affect hundreds of workers.
Production Challenges and New Ventures
The restructuring follows a period of operational challenges and executive turnover. The company struggled with initial production and quality issues for the Gravity SUV but ultimately doubled its output in 2025 compared to the previous year.
Lucid is collaborating with Uber and autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco area this year. The company's new mid-size EV is expected to cost around $50,000.
Leadership Vacuum and Legal Disputes
The layoffs occur almost a year after the abrupt resignation of former CEO and CTO Peter Rawlinson on 25 February 2025. Since then, Lucid has experienced significant executive turnover, including the departure of its chief engineer, who sued the company in December for wrongful termination and discrimination—claims Lucid has called "absurd."
The company is scheduled to release its full financial results for 2025 next week, which will provide further insight into its financial position amid these strategic shifts.