Lucid Motors cuts 12% of workforce as EV maker continues profitability push and product ramp-up

Workforce reduction targets salaried roles while factory hourly teams remain in place

Lucid Group, the Newark, California–based electric-vehicle manufacturer, has implemented a new round of layoffs affecting 12% of its workforce. The company said the move is intended to streamline operations and improve efficiency as it works toward profitability. Lucid did not disclose the exact number of employees impacted, but its most recently reported global headcount was 6,800 full-time employees at the end of 2024, implying reductions in the hundreds.

The cuts are structured to avoid disrupting vehicle output. Lucid said hourly production employees at its Arizona manufacturing facility are not included. Internally, employees were told the reductions exclude hourly teams spanning manufacturing, logistics, and quality, indicating the company is concentrating the layoffs on non-hourly functions.

Layoffs follow earlier restructuring steps and leadership transition

This is the latest in a series of cost-focused workforce actions by Lucid over the past several years. The company previously announced a large restructuring in 2023 and another round of job reductions in 2024, as EV makers faced pressure from pricing competition, higher borrowing costs, and slower-than-expected demand growth for higher-priced models.

The announcement also arrives during an extended leadership transition. Marc Winterhoff has served as interim chief executive officer since February 2025, after longtime CEO Peter Rawlinson stepped down from the role.

Product roadmap continues: Gravity ramp and midsize platform plans

Lucid is now selling two consumer vehicles: the Air luxury sedan and the Gravity SUV. The company has been working to ramp Gravity production and to broaden its sales base beyond the Air, which competes in the premium segment of the EV market. Lucid has also outlined plans for a midsize vehicle priced around $50,000, positioning it for a larger addressable market than its current lineup.

On operations, Lucid has reported rising production volumes. For 2025, the company reported manufacturing 18,378 vehicles and delivering 15,841, with a strong fourth quarter that included 8,412 produced and 5,345 delivered. Those figures represent a significant increase from 2024, when Lucid reported 9,029 vehicles produced and 10,241 delivered.

What Lucid is offering affected employees

Lucid said impacted workers will receive a separation package that includes severance and continued benefits, along with transition support. The company framed the changes as a resource reallocation rather than a change in product strategy, maintaining that near-term priorities remain tied to product execution, software development, and scaling output.

• Layoffs: 12% workforce reduction, with the company not disclosing a precise count
• Scope: Hourly production roles at the Arizona plant excluded
• Context: Follows prior restructuring actions in 2023 and 2024
• Operations: 2025 production and deliveries increased sharply versus 2024

Lucid’s latest cuts underscore how EV manufacturers are balancing product expansion and manufacturing ramp-ups with tighter cost controls in a market where demand and pricing have remained volatile.