The Lucid electric car will be seen at the New York International Auto Show on April 2, 2026.
Daniel DeVries | CNBC
lucid group announced Monday that it will cut its U.S. workforce by about 18% as part of a cost-cutting plan.
The all-electric vehicle maker said its plans would result in annual cost savings of about $158 million.
The company announced Monday that Chief Operating Officer Mark Winterhoff will be retiring effective immediately. Lucid said Winterhoff served as the company’s interim CEO until Silvio Napoli took over the top job on June 1, but the COO role has been eliminated.
Lucid’s job cuts include full-time manufacturing employees, contractors and hourly production workers, according to a filing with the Securities and Exchange Commission. The company has approximately 9,000 employees worldwide as of December 31st.
“This was a difficult decision made to align production with demand, reduce inventory and adapt to adverse market conditions,” a Lucid spokesperson said in a statement. “These are part of a broader effort to simplify the company, strengthen execution, and improve Lucid’s competitive position over the long term.”
In February, Lucid laid off about 12% of its U.S. employees in an effort to improve profitability.
Lucid on Monday said it expects to incur approximately $32 million in cash costs related to severance, benefits and employee transfers related to the layoffs, according to filings.
The company also announced that it will eliminate second shift production at its AMP-1 plant in Arizona.
Lucid said last month that Napoli would evaluate the company’s business operations. As a result, the company suspended its guidance and added that it needed to reduce “increased inventories” that have historically meant a reduction or pause in vehicle production for automakers.
Lucid held its first investor day in nearly five years in March. The company said at the time that it expected to become cash flow positive by the second half of this year.
Lucid was able to increase sales and narrow its losses, but in 2025 it posted a loss of $2.7 billion on revenue of $1.35 billion. Free cash flow was negative $3.8 billion last year, an increase of about 31% year-over-year.
Lucid and its electric vehicle companies face a tougher market than in recent years due to slower-than-expected EV adoption and regulatory changes under the Trump administration, including the elimination of a $7,500 federal incentive for EV purchases.
—CNBC’s Michael Wayland contributed to this report.
