Lucid cuts 18% of US workforce as EV demand pressures persist

Lucid Group will eliminate about 18% of its US workforce and remove its chief operating officer role, the latest cost-cutting move by an electric-vehicle maker facing sustained demand headwinds.

Lucid Group will lay off about 18% of its US workforce, including Chief Operating Officer Marc Winterhoff, as the company streamlines operations and aligns production with weaker-than-expected demand, the Newark, California-based EV maker said Monday. The cuts span full-time employees, contractors and hourly production workers and are expected to reduce annual costs by roughly $158 million.

"The actions we are taking are necessary to align our cost structure with current market conditions and position Lucid for long-term success," the company said in a statement. Winterhoff will be eligible for severance benefits, and the company expects to record about $32 million in cash charges tied to severance, employee benefits and transition costs.

As part of the reduction, Lucid has eliminated the second production shift at its AMP-1 factory in Casa Grande, Arizona. The layoffs are expected to be substantially complete by the end of the third quarter. The company employed about 9,000 people globally as of Dec. 31, a figure that does not account for a previous round of job cuts announced in February, when Lucid said it would lay off roughly 12% of its US workforce.

The restructuring comes as Lucid, which went public in 2021 via a merger with a blank-check company, continues to burn cash while scaling production of its Air sedan and preparing to launch its Gravity SUV. The company delivered 10,241 vehicles in 2025, far below the initial production targets it set when it projected building 20,000 units annually. Lucid reported a net loss of $2.8 billion for fiscal 2025, according to its most recent annual filing.

Lucid's latest cuts follow a similar move by rival Rivian Automotive, which laid off hundreds of employees last week as it pushes toward profitability while launching its R2 model, a lower-priced SUV expected to begin production in 2026. Both companies face the same structural challenge: high fixed costs from factory buildout and R&D spending, combined with EV demand that has grown more slowly than the industry anticipated.

The broader EV sector has seen a wave of cost-cutting across the board. Tesla, the market leader, has reduced headcount in multiple rounds over the past two years, while legacy automakers including Ford Motor and General Motors have scaled back or delayed EV production targets. The pressure is particularly acute for pure-play EV startups like Lucid and Rivian, which lack the cash flow from combustion-engine vehicle sales to subsidize their electric transitions.

Lucid shares have declined about 45% over the past 12 months, giving the company a market capitalization of roughly $7.5 billion. The stock traded at about $2.80 in after-hours trading Monday following the announcement. The company ended the first quarter of 2026 with about $4.3 billion in cash and equivalents, providing a runway that analysts estimate extends into late 2027 at current burn rates.

This article is for informational purposes only and does not constitute investment advice.