Lucid Motors cuts 12% of its workforce as it seeks profits

Lucid Motors is laying off 12% of its workforce in an effort to “improve operational efficiency and optimize our resources while continuing to drive profitability,” according to an internal memo obtained by TechCrunch.

Hourly workers in the production, manufacturing, and quality divisions are not affected by the cuts, according to the memo, which was sent to workers for layoffs and layoffs. It is unclear how many are being laid off, but it is likely in the hundreds. Lucid Motors said it has 6,800 full-time employees worldwide by the end of 2024.

“Saying goodbye to colleagues is never easy,” current CEO Marc Winterhoff wrote in a memo. “We are grateful for the contributions of those affected by today’s incident, and we are offering severance, bonus, continued health benefits, and transition support to help during this time.” The company did not immediately respond to a request for comment.

The cut comes as the company is in the midst of ramping up production and delivery of its Gravity SUV. While Lucid Motors has struggled with Gravity’s production and challenges in the first few months, the company has managed to rise, and finally. double its 2024 results last year.

The company also plans to launch an affordable mid-range EV later this year that is expected to cost $50,000. It’s partnering with Uber and independent startup Nuro to launch a robotaxi service in San Francisco this year. The company plans to release its financial results for 2025 next week.

“Importantly, today’s developments do not affect our strategy,” Winterhoff wrote in a memo. “Our priorities do not change, and we continue to focus on the beginning of the development of our Midsize platform. With the right execution, we also look to expand the robotaxi market, continue ADAS and software development, and the growth of Lucid Gravity and Air products across existing and new areas.”

Lucid Motors has now gone nearly a year without a permanent CEO. Peter Rawlinson, the company’s former CEO and chief technology officer, he suddenly quit his job on February 25, 2025. Since then, Lucid Motors has seen a a large number of exits from his senior positionsincluding the death of its chief engineer, who sued the company in December for wrongful termination and discrimination. (Lucid Motors has called its legal claims “nonsense.”)