Lucid Motors Cuts 12% of Workforce to Drive Profitability
Lucid Motors has announced a significant workforce reduction of 12% as part of its efforts to enhance operational efficiency and drive profitability. This decision was communicated in an internal memo received by El-Balad, detailing the company’s commitment to optimizing resources.
Workforce Reduction Details
The layoffs, impacting hundreds of employees, will not affect hourly workers involved in manufacturing, logistics, and quality assurance. Lucid Motors employed approximately 6,800 full-time staff globally as of late 2024.
Interim CEO Marc Winterhoff expressed sympathy for those affected, stating, “Saying goodbye to colleagues is never easy.” He assured employees that those laid off would receive severance, bonuses, health benefits, and transition support.
Production Challenges and Future Plans
This strategic workforce cut comes amid scaling production efforts for the new Gravity SUV. Although Lucid experienced production and quality challenges during the initial months, it has since doubled its output for 2024.
Additionally, the company is set to introduce a mid-size electric vehicle (EV) priced around $50,000 later this year. Collaborations with Uber and Nuro aim to establish a robotaxi service in the San Francisco area.
Ongoing Strategy Amid Changes
Despite the layoffs, Winterhoff emphasized that Lucid’s core strategy remains intact. The focus is on the production of its midsize platform, expanding into the robotaxi market, and enhancing advanced driver-assistance systems (ADAS) and software development.
Leadership Changes
Lucid Motors has been without a permanent CEO for nearly a year following the abrupt resignation of Peter Rawlinson on February 25, 2025. This change has resulted in notable turnover in senior management, including the departure of the chief engineer who filed a wrongful termination lawsuit against the company.
Upcoming Financial Updates
The company is scheduled to announce its financial results for 2025 next week, as it continues to navigate these significant changes while working toward its profitability goals.
