Lucid Motors slashes 12% of its workforce as it seeks profitability

Lucid Motors is laying disconnected 12% of its workforce successful a bid to “improve operational effectiveness and optimize our resources arsenic we proceed connected our way toward profitability,” according to an interior memo that was obtained by TechCrunch.

Hourly workers connected the manufacturing, logistics, and prime teams are not affected by the cuts, according to the memo, which was sent to employees being spared by the layoffs. It’s unclear precisely however galore workers are being laid off, but it is apt successful the hundreds. Lucid Motors reported having 6,800 full-time employees globally at the extremity of 2024.

“Saying goodbye to colleagues is ne'er easy,” interim CEO Marc Winterhoff wrote successful the memo. “We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued wellness benefits, and modulation enactment to assistance them done this period.”

The cuts travel arsenic the institution is successful the mediate of ramping up accumulation and deliveries of its Gravity SUV. While Lucid Motors struggled with Gravity accumulation and prime issues during the archetypal fewer months, the institution has been capable to prime up the pace, and yet doubled its 2024 output past year.

The institution is besides preparing to motorboat a much affordable mid-size EV aboriginal this twelvemonth that is expected to outgo astir $50,000. It’s collaborating with Uber and autonomous conveyance institution Nuro connected launching a robotaxi work successful the San Francisco country this year, too. The institution is scheduled to merchandise its fiscal results for 2025 adjacent week.

“Importantly, today’s actions bash not impact our strategy,” Winterhoff wrote successful the memo. “Our halfway priorities stay unchanged, and we proceed to absorption connected the commencement of accumulation of our Midsize platform. With disciplined execution, we are besides focused connected further enlargement into the robotaxi market, continued ADAS and bundle development, and maturation successful income of Lucid Gravity and Air crossed existing and caller geographies.”

Lucid Motors has present gone astir a afloat twelvemonth without a imperishable CEO. Peter Rawlinson, who was the company’s main enforcement and main method officer, abruptly resigned connected February 25, 2025. Since then, Lucid Motors has seen a significant magnitude of turnover successful its enforcement ranks, including the nonaccomplishment of its main engineer, who sued the company successful December for wrongful termination and discrimination. (Lucid Motors has called his ineligible claims “absurd.”)