Lucid Group announced on Monday it will reduce its U.S. workforce by approximately 18% and eliminate the Chief Operating Officer (COO) role, marking a significant restructuring effort. The layoffs will affect full-time employees, contractors, and hourly production workers, including those at the company's primary manufacturing facility, AMP-1 in Arizona. The company also plans to scrap the second production shift at AMP-1 to align with anticipated demand.
The restructuring is part of a broader plan to boost profitability amid growing competition in the electric vehicle (EV) market. Lucid expects the cuts to generate $158 million in annualized cost savings, though it will incur approximately $32 million in restructuring charges. The company cited the need to align production with demand, reduce inventory, and adapt to declining market conditions as key motivations for the changes.
Marc Winterhoff, who had served as interim CEO earlier this year, has departed the company following the elimination of the COO position. The move comes after Lucid suspended its full-year forecast earlier this year due to a supplier-related issue that disrupted deliveries of its Gravity SUV. The company reported its largest revenue miss in over four years in February.
Lucid held its first investor day in nearly five years in March, where it outlined plans to achieve cash-flow positivity by later this decade. Despite increasing sales and narrowing losses, the company reported a net loss of $2.7 billion on revenue of $1.35 billion in 2025. It also confirmed plans to launch two new mid-sized SUV models, the Cosmos and Earth, later this year, targeting different segments of the market.