Lucid Motors has announced a significant reduction in its workforce, laying off approximately 1,500 employees, which constitutes 18% of its staff. This decision comes just four months after the company implemented a 12% staff reduction. Additionally, Lucid has ceased the second shift of electric vehicle production at its Casa Grande, Arizona facility.
These measures are part of an initiative by newly appointed CEO Silvio Napoli to streamline operations and enhance the company’s competitiveness. The layoffs coincide with a cooling U.S. electric vehicle market, where several automakers are reevaluating their EV strategies.
Marc Winterhoff, who served as interim CEO for over a year before Napoli’s appointment, has also departed. Initially slated to continue as chief operating officer, the company has now eliminated this position entirely.
Lucid is preparing to launch its first mass-market vehicle, the Lucid Cosmos SUV, later this year. Priced under $50,000, the Cosmos is intended to steer the company toward profitability. Concurrently, Lucid is collaborating with Uber and Nuro to introduce a luxury robotaxi service in San Francisco, also expected to debut this year.
Over the past two years, Lucid has experienced significant executive turnover. Former CEO Peter Rawlinson resigned in February 2025, and Chief Engineer Eric Bach departed later that year, subsequently filing a wrongful termination lawsuit. More recently, Emad Dlala, a long-standing employee, resigned earlier this month after a recent promotion.
The current layoffs affect full-time employees, contractors, and hourly production workers. Prior to the 12% reduction in February, Lucid reported a global workforce of 9,000 at the end of 2025. The company anticipates that these cuts will align production with expected demand and result in annual savings of approximately $158 million. The restructuring is expected to conclude by the third quarter of this year, with severance costs estimated at $32 million.
Lucid’s aggressive restructuring under CEO Silvio Napoli reflects the company’s urgent need to adapt to a rapidly evolving electric vehicle market. The success of the upcoming Lucid Cosmos SUV and the planned robotaxi service will be critical in determining Lucid’s ability to achieve profitability and sustain its position in the competitive EV landscape.
