Lucid Group said on Monday that it is cutting its U.S. workforce by approximately 18% as part of a cost-savings plan. The electric vehicle-maker said its plan would give it annualized cost savings of approximately $158 million.
Lucid also said its Chief Operating Officer, Marc Winterhoff — who was also previously the interim CEO — is leaving the company effective immediately. Lucid said that the role of COO has been eliminated.
According to a filing, Lucid’s workforce reductions include full-time employees, contractors and hourly production workers in manufacturing. There were about 9,000 Lucid employees as of December 31.
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“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a Lucid spokesperson said in a statement. “They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time.”
Lucid laid off about 12% of its U.S. workforce in February, as part of its push for profitability. Lucid said Monday it expects to incur cash charges of approximately $32 million related to severance, employee benefits and employee transition associated with the latest cuts, according to its filing.
Lucid also said it would be eliminating the second shift of production at its AMP-1 factory in Arizona, and that CEO Silvio Napoli would be evaluating the company’s business operations. The EV maker suspended its vehicle production guidance as a result, adding that it needs to reduce its “elevated inventory” of vehicles — a situation that has historically prompted automakers to cut back or temporarily idle production.
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The automaker has been facing several operational setbacks as of late, including a supplier-related issue that disrupted deliveries of its Gravity SUV in February. Last month, the company suspended its 2026 production outlook, pending a review of the business.
According to a Reuters report, Lucid has been betting on its Gravity SUV and upcoming mid-size vehicle platform to fuel growth. Lucid had also entered into a partnership with Uber and self-driving vehicle startup Nuro, in order to roll out robotaxis.
Lucid also said the restructuring will result in about $32 million in severance and other employee-related charges, while delivering annualized cost savings of approximately $158 million.
Lucid and its peers in the electric vehicle are currently facing a more challenging environment than before, because of slower-than-expected adoption of EVs and changing regulations under the Trump administration. This included the elimination of a $7,500 federal incentive for purchasing an EV.