Lucid Motors’ new CEO cuts 18% of staff to ‘simplify the company’

Lucid Motors is laying off 18% of its workforce, oregon astir 1,500 employees, conscionable 4 months aft the EV shaper chopped 12% of its staff. The institution said connected Monday that it has besides “eliminated the 2nd shift” of EV accumulation astatine its mill successful Casa Grande, Arizona.

The cuts are portion of a bid by Lucid’s new CEO, Silvio Napoli, to “simplify the company, sharpen execution, and presumption Lucid to go much competitory implicit time,” the institution said successful a statement. The lay-offs travel arsenic the electrical conveyance marketplace successful the United States has cooled, with large automakers pulling electrical models from their ain merchandise plans.

Marc Winterhoff, who served arsenic interim CEO for much than a twelvemonth until Napoli took the job, has besides near the company. Winterhoff, Napoli, and the institution had each antecedently said that Winterhoff would enactment connected arsenic main operating serviceman aft stepping down arsenic interim CEO. In a regulatory filing, Lucid Motors said it has eliminated the main operating serviceman presumption entirely.

This circular of cuts comes arsenic Lucid Motors works toward releasing its archetypal mass-market conveyance aboriginal this year, the Lucid Cosmos SUV. The lower-cost EV is expected to commencement astatine nether $50,000 and enactment Lucid Motors connected the way to profitability.

Lucid Motors is besides attempting to go a large subordinate successful the autonomous conveyance space, partnering up with Uber and Nuro connected a luxury robotaxi work slated to motorboat aboriginal this twelvemonth successful San Francisco. The institution declined to remark connected whether immoderate of its programs are being mothballed.

The Saudi Arabia-owned, publicly-traded institution has seen much than a twelve apical executives permission implicit the past 2 years. Longtime CEO Peter Rawlinson abruptly resigned successful February 2025; Chief Engineer Eric Bach was fto spell successful precocious 2025, and filed a wrongful termination suit soon aft (though that suit has been stayed pending arbitration); and Emad Dlala, different longtime employee, resigned earlier this month conscionable a fewer months aft being promoted to a apical role.

The latest cuts see full-time employees, contractors, and hourly accumulation workers. The institution reported having 9,000 employees globally astatine the extremity of 2025, anterior to the 12% chopped successful February.

Lucid said the layoffs volition assistance it align “production plans with anticipated demand,” and make annualized savings of astir $158 million. The institution expects the restructuring to implicit by the 3rd 4th of this year.

Lucid volition wage astir $32 cardinal successful severance. Winterhoff, the outgoing executive, volition get severance, “certain information support,” and volition beryllium capable to support his institution vehicle, according to the regulatory filing.