Lucid Motors Set To Lay Off 12 Percent Of Its Workforce

Lucid Motors will lay off 12 percent of its workforce in an attempt to improve operational efficiency and move closer to profitability.

The company had around 6,800 full-time employees worldwide at the end of 2024, which means that several hundred people could lose their jobs. Interim CEO Mark Winterhoff said in a message to employees that affected workers will be provided with severance pay, bonuses, extended health insurance, and employment support.

The restructuring comes as Lucid ramps up production of the Gravity SUV. After initial quality issues and a slower pace of production, the company was able to speed up deliveries.

At the same time, the launch of a new, more affordable mid-size model is being prepared, the starting price of which should be around 50,000 dollars. With that, Lucid wants to expand its customer base beyond the premium segment where the Lucid Air model currently resides.

The company is also working with Uber and autonomous technology company Nuro to launch a robotaxi service in the San Francisco area. In parallel, the development of driver assistance systems (ADAS) and software solutions continues, which management sees as the key to long-term growth.

This round of layoffs comes nearly a year after the sudden departure of longtime CEO Peter Rawlinson, who left the company in February 2025. Since then, Lucid has been without a permanent CEO, and several senior executives have left the company, including the chief engineer.

Despite the cuts, management says the strategy remains unchanged: the focus is on starting production of the new midsize platform, expanding into the robotaxi market, and growing sales of the Gravity and Air models in existing and new markets. Cutting costs, thus, represents an attempt to stabilize business in the phase of intensive investments and expansion of the offer.

• Also See: Uber Places An Order For 20,000 Lucid Gravity Self-Driving Taxis