Lucid Motors is cutting approximately 18% of its US workforce and ending the second production shift at its Arizona factory as newly appointed CEO Silvio Napoli restructures the electric vehicle company.
The cuts affect full-time employees, contractors, and hourly manufacturing workers. Lucid did not provide an exact figure, but the reduction could affect around 1,500 roles based on the approximately 9,000 employees it reported globally at the end of 2025.
Restructuring Targets $158 Million in Annual Savings
Lucid said the changes are intended to simplify its organisation, improve execution, and align production with expected customer demand. The company expects the programme to generate approximately $158 million in annualised cost savings.
It anticipates recording around $32 million in cash charges covering severance, employee benefits, and transition expenses. Most of the restructuring is expected to be completed by the end of the third quarter of 2026.
The company will also eliminate the second production shift at its AMP-1 factory in Casa Grande, Arizona. The facility manufactures Lucid’s Air sedan and Gravity SUV.
The latest reduction follows a separate 12% cut to Lucid’s US workforce announced in February. Lucid recorded $37.9 million in workforce reduction charges during the first quarter.
Chief Operating Officer Position Eliminated
Lucid also eliminated its chief operating officer position, leading to the departure of Marc Winterhoff. He had served as interim CEO for more than a year following Peter Rawlinson’s resignation in February 2025.
Winterhoff returned to the COO position when Napoli formally became chief executive on June 1. Lucid had previously said Winterhoff would remain responsible for operations after the leadership transition.
According to the company’s regulatory filings, Winterhoff will receive severance benefits, continued security support for a limited period, and ownership of his company vehicle.
Lucid Continues Lower-Cost EV and Robotaxi Plans
The restructuring comes as Lucid prepares a midsize vehicle platform intended to reach a wider customer base than its premium Air and Gravity models. The company has said the future vehicles will include models priced below $50,000.
Lucid is also continuing its autonomous vehicle partnership with Uber and Nuro. The companies plan to introduce a robotaxi service using Lucid vehicles, with public operations expected to begin in San Francisco later in 2026.
Lucid said in May that it had delivered all Gravity robotaxi test vehicles and continued on-road testing. The company has not announced that the latest workforce reductions will cancel any vehicle or autonomy programme.
Featured image credits: Wikimedia Commons
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