Lucid Motors cuts 12% of its workforce in pursuit of profits

Lucid Motors will lay off 12% of its workforce to “improve operational efficiency and optimize resources as we continue on our path to profitability,” according to an internal memo obtained by TechCrunch.

Hourly workers in manufacturing, logistics and quality teams will not be affected by the layoffs, according to a memo sent to employees who were spared layoffs. The exact number of employees who will be laid off is unknown, but it is likely to be in the hundreds. Lucid Motors reported that it had 6,800 full-time employees worldwide at the end of 2024.

“It is never easy saying goodbye to a colleague,” Interim CEO Mark Winterhoff wrote in a memo. “We appreciate the contributions of those affected by today’s actions and are providing severance packages, bonuses, ongoing health benefits and transition support to help them get through this period.” The company did not respond to requests for comment.

The job cuts come as the company ramps up production and delivery of its Gravity SUV. Although Lucid Motors struggled with Gravity’s production and quality issues in the first few months, the company was able to pick up the pace and ultimately doubled its 2024 production last year.

The company is also preparing to launch a more affordable mid-size EV later this year, expected to cost around $50,000. The company is working with Uber and self-driving car company Nuro to launch robotaxi services in the San Francisco area this year as well. The company is scheduled to announce its 2025 financial results next week.

“Importantly, today’s actions have no impact on our strategy,” Winterhoff wrote in the memo. “Our core priorities remain the same and we remain focused on starting production of our mid-sized platform. With disciplined execution, we are also focused on further expanding into the robotaxis market, continuing ADAS and software development, and increasing sales of Lucid Gravity and Air across existing and new geographies.”

Lucid Motors has now been without a permanent CEO for almost a full year. Peter Rawlinson, the company’s chief executive officer and chief technology officer, abruptly resigned on February 25, 2025. Since then, Lucid Motors has seen significant leadership changes, including the loss of its chief engineer, who sued the company in December for wrongful termination and discrimination. (Lucid Motors called his legal claims “ridiculous.”)