Lucid Motors is laying off 12% of its workforce in an effort to improve operational effectiveness and optimize resources on its path toward profitability. This news comes from an internal memo obtained by TechCrunch. The cuts do not affect hourly workers on the manufacturing, logistics, and quality teams. While the exact number is unclear, it is likely in the hundreds, as the company reported having 6,800 full-time employees globally at the end of 2024.
In the memo, interim CEO Marc Winterhoff stated, “Saying goodbye to colleagues is never easy.” He expressed gratitude for the contributions of those impacted and noted the company is providing severance, bonus payments, continued health benefits, and transition support. The company did not immediately respond to a request for comment.
These layoffs occur as Lucid is ramping up production and deliveries of its Gravity SUV. The company faced initial production and quality issues with the Gravity but ultimately managed to double its total vehicle output last year.
Simultaneously, Lucid is preparing to launch a more affordable mid-size electric vehicle later this year, with an expected price around $50,000. The company is also collaborating with Uber and autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco area this year. Lucid is scheduled to release its 2025 financial results next week.
Winterhoff emphasized that the layoffs do not alter the company’s strategy. Core priorities remain unchanged, focusing on the start of production for the Midsize platform. The company is also executing on expansion into the robotaxi market, continued development of advanced driver-assistance systems and software, and growth in sales of the Lucid Gravity and Air across existing and new regions.
Lucid Motors has now operated for nearly a full year without a permanent CEO. Former chief executive and chief technical officer Peter Rawlinson resigned abruptly on February 25, 2025. Since that time, the company has seen significant turnover in its executive ranks, including the departure of its chief engineer. That former executive sued the company in December for wrongful termination and discrimination, claims which Lucid Motors has called “absurd.”