Lucid Motors is reducing its workforce by 12% to enhance operational effectiveness and optimize resources as it aims for profitability, an internal memo revealed. The layoffs do not affect hourly workers in manufacturing, logistics, and quality teams. Although the exact number of layoffs is unknown, it’s speculated to be in the hundreds. Lucid Motors had 6,800 employees worldwide at the end of 2024.
Interim CEO Marc Winterhoff stated in the memo that parting with colleagues is challenging and expressed gratitude for their contributions, offering support such as severance, bonuses, continued health benefits, and transition assistance. The company did not immediately comment.
Amidst the layoffs, Lucid Motors is increasing production and deliveries of its Gravity SUV, having overcome initial production and quality challenges. Last year, the company doubled its 2024 output.
Lucid also plans to release a mid-size EV priced around $50,000 and is working with Uber and Nuro on a San Francisco robotaxi service. The company will announce its 2025 financial results next week.
Winterhoff assured that the layoffs do not affect Lucid’s strategy, emphasizing continued focus on launching the Midsize platform, expanding into the robotaxi market, advancing ADAS and software, and increasing sales of Lucid Gravity and Air globally.
Lucid Motors hasn’t had a permanent CEO for nearly a year since Peter Rawlinson’s sudden departure in February 2025, followed by significant executive turnover, including the exit of the chief engineer, who later sued for wrongful termination and discrimination, a claim Lucid labeled “absurd.”