Lucid Motors is cutting 12% of its workforce as it works to reduce costs and improve efficiency while preparing new vehicle launches and expanding production, according to an internal memo obtained by TechCrunch.
Scope Of The Layoffs
The memo says hourly workers in manufacturing, logistics, and quality teams will not be affected. It does not state the exact number of employees being laid off, but the total is expected to be in the hundreds. Lucid Motors reported having 6,800 full-time employees worldwide at the end of 2024.
“Saying goodbye to colleagues is never easy,” interim chief executive Marc Winterhoff wrote in the memo sent to employees who are not being laid off. “We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.” The company did not immediately respond to a request for comment.
Production And New Vehicle Plans
The cuts come as Lucid is increasing production and deliveries of its Gravity SUV. The company faced production and quality issues in the first months of Gravity manufacturing but later increased output and doubled its total production in 2024.
Lucid is also preparing to release a more affordable mid-size electric vehicle later this year, with an expected price of about $50,000. The company is working with Uber and autonomous vehicle firm Nuro on a robotaxi service planned for the San Francisco area this year. Lucid is scheduled to publish its 2025 financial results next week.
Strategy Remains In Place
In the memo, Winterhoff said the layoffs do not change the company’s overall direction. “Importantly, today’s actions do not affect our strategy,” he wrote. He said the company will continue to focus on starting production of its midsize platform, expanding into the robotaxi market, continuing advanced driver assistance and software development, and growing sales of the Lucid Gravity and Air models in existing and new markets.
Leadership Changes Over The Past Year
Lucid Motors has been without a permanent chief executive for nearly a year. Former CEO and chief technical officer Peter Rawlinson resigned on February 25, 2025. Since then, the company has seen multiple departures among senior leaders, including its chief engineer, who sued Lucid in December over wrongful termination and discrimination claims. Lucid has said those claims are “absurd.”
Featured image credits: Epoch Automotive
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