Lucid Motors is laying off 12% of its workforce in an effort to “improve operational efficiency and optimize our resources as we continue our path to profitability,” according to an internal memo obtained by TechCrunch.
Hourly wages in production, logistics and quality teams are not affected by the cuts, according to the memo, which was sent to workers who were spared the layoffs. It’s unclear exactly how many workers are being laid off, but it’s likely in the hundreds. Lucid Motors said it has 6,800 full-time employees worldwide at the end of 2024.
“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff wrote in the memo. “We are grateful for the contributions of those affected by today’s actions and are providing severance, bonuses, continued health benefits and transition support to help them through this time.” The company did not immediately respond to a request for comment.
The cuts come as the company is in the midst of ramping up production and deliveries of its Gravity SUV. While Lucid Motors faced production and quality issues with the Gravity in the early months, the company was able to pick up the pace and eventually doubled production to 2024 last year.
The company is also preparing to launch a more affordable midsize EV later this year that is expected to cost around $50,000. It’s partnering with Uber and self-driving car company Nuro to launch a robotaxi service in the San Francisco area again this year. The company is scheduled to announce its 2025 financial results next week.
“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote in the note. “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 growing Lucid Gravity and Air sales in existing and new geographies.”
Lucid Motors has gone nearly a full year without a permanent CEO. Peter Rawlinson, who was the company’s chief executive and technical director, resigned suddenly on February 25, 2025. Since then, Lucid Motors has seen significant turnover in its executive ranks, including the loss of its chief engineer, who sued the company in December for wrongful termination and discrimination. (Lucid Motors called his legal claims “absurd.”)
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