The EV maker is eliminating roughly 1,500 jobs and scrapping a production shift at its Arizona factory, targeting $158 million in annual savings
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Lucid $LCID Group announced a plan Monday to cut approximately 18% of its U.S. workforce, affecting full-time employees, contractors, and hourly production workers, as new CEO Silvio Napoli moves to reduce costs and restructure the company's operations.
The company expects the restructuring to save about $158 million each year. Severance, benefits, and other transition costs should total around $32 million. Most of the reorganization is expected to finish before the end of the third quarter of 2026.
At its AMP-1 plant in Casa Grande, Arizona, Lucid has ended a second production shift that the company had stood up toward the end of last year in an effort to boost output, Bloomberg reported.
Among the organizational changes, Lucid has done away with the chief operating officer position altogether. Marc Winterhoff, who stepped down as interim CEO when Napoli came aboard and had remained as COO, is no longer with the company. Per the regulatory filing, his departure package includes severance, security-related support, and the right to retain his company vehicle.
The workforce reduction is the second major round of cuts this year. An earlier round of cuts in February reduced headcount by 12%. With the company having counted roughly 9,000 employees on its payroll at year-end 2025, the combined effect of both rounds points to a total reduction of around 2,500 jobs. The latest round amounts to approximately 1,500 employees, according to TechCrunch.
The restructuring comes after a turbulent stretch for the luxury electric vehicle maker. A second-row seat defect that halted Gravity SUV shipments in Feb. caused more than $200 million in revenue impairment during the first quarter and forced Lucid to withdraw its full-year production guidance of 25,000 to 27,000 vehicles. Quarterly revenue of $282.5 million fell well short of analyst expectations, and the company's net loss per share exceeded forecasts.
According to Lucid, Monday's actions reflect a broader effort to move the company toward profitability and sustainable cash generation, with goals that include leaning out its organizational layers, cutting operating costs, and matching production volumes to what customer demand actually supports. Lucid stock fell 1.4% in morning trading Monday.
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