Lucid Group said on Monday it will pare down its U.S. workforce by roughly 18% and that Chief Operating Officer Marc Winterhoff has left the company. The automaker described the move as part of ongoing efforts to improve profitability.
The company did not provide a headcount figure for the specific layoffs. Lucid said the reductions will touch full-time employees, contractors and hourly workers on the factory floor. As of December 31, Lucid reported about 9,000 employees worldwide. The firm also confirmed it has eliminated the second shift at AMP-1, its primary electric vehicle production plant.
Investors reacted to the announcement with the company's shares dropping about 4% following the disclosure.
This action represents Lucid's second notable workforce reduction this year. In February, the company cut 12% of its U.S. workforce in an effort to conserve cash. Management has cited operational challenges in recent months, including a supplier-related issue that disrupted deliveries of the Gravity SUV in February. In addition, Lucid suspended its 2026 production outlook last month while conducting a business review.
Lucid said it expects the current restructuring to produce approximately $32 million in severance and other employee-related charges. The company projects the changes will yield about $158 million in annualized cost savings.
The personnel change at the executive level follows a period of leadership transitions. Marc Winterhoff served as interim chief executive for more than a year after Peter Rawlinson stepped down from that role in February 2025. In April, Lucid named Silvio Napoli, formerly chief of Schindler, as its CEO.
Management continues to present the Gravity SUV and a planned mid-size vehicle platform as the pillars for future revenue growth. The company is also advancing a robotaxi initiative through partnerships with Uber and autonomous-delivery partner Nuro.
Implications and context
- The workforce reduction and production-shift cut are framed by Lucid as moves to reduce costs and shore up profitability.
- Reported severance charges will affect near-term results, while the company projects material annualized savings if the plan performs as expected.
- Operational disruptions and a suspended production outlook highlight ongoing execution and planning uncertainties for the company.
What this means for related sectors
- Automotive manufacturing and suppliers could feel downstream effects from changes in Lucid's production cadence and staffing.
- Labor markets tied to EV production at AMP-1 and similar facilities are directly affected by shift eliminations and layoffs.
- Partnership efforts in robotaxi and autonomous delivery remain strategic priorities but carry execution risk tied to Lucid's operational stability.