Lucid Motors slashes 12% of its workforce as it seeks profitability

Source: TechCrunch

Layoffs Overview

Lucid Motors is laying off 12% of its workforce in a bid to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” according to an internal memo obtained by TechCrunch.

Hourly workers on the manufacturing, logistics, and quality teams are not affected by the cuts, according to the memo, which was sent to employees being spared by the layoffs. It’s unclear exactly how many workers are being laid off, but it is likely in the hundreds. Lucid Motors reported having 6,800 full-time employees globally at the end of 2024【SEC filing】.

“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff wrote in the memo. “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.

Operational Impact

The cuts come as the company is in the middle of ramping up production and deliveries of its Gravity SUV. While Lucid Motors struggled with Gravity production and quality issues during the first few months, the company has been able to pick up the pace and ultimately doubled its 2024 output【TechCrunch article】 last year.

Upcoming Products & Partnerships

• Mid‑size EV – Lucid is preparing to launch a more affordable mid‑size electric vehicle later this year, expected to cost around $50,000.
• Robotaxi service – The company is collaborating with Uber and autonomous‑vehicle startup Nuro to launch a robotaxi service in the San Francisco area this year.

Lucid Motors is scheduled to release its financial results for 2025 next week.

“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote. “Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies.”

Leadership and Executive Turnover

Lucid Motors has now gone almost a full year without a permanent CEO. Peter Rawlinson, who was the company’s chief executive and chief technical officer, abruptly resigned【TechCrunch article】 on February 25, 2025.

Since then, the company has seen a significant amount of turnover in its executive ranks, including the loss of its chief engineer, who sued the company【TechCrunch article】 in December for wrongful termination and discrimination. Lucid Motors has called his legal claims “absurd.”

Financial Outlook

The upcoming release of the 2025 financial results will provide further insight into how the layoffs and operational adjustments are influencing Lucid Motors’ path toward profitability.