Electric vehicle manufacturer Lucid Group announced Monday that it will reduce its U.S. workforce by approximately 18% as part of a restructuring plan aimed at lowering costs and adapting to weakening market conditions, while also confirming the departure of Chief Operating Officer Marc Winterhoff.
The company said the workforce reduction is expected to generate annualized savings of approximately $158 million as it seeks to improve operational efficiency and strengthen its long-term competitiveness in an increasingly challenging electric vehicle market.
Lucid also revealed that Winterhoff is leaving the company effective immediately. The executive had served as interim chief executive officer before Silvio Napoli assumed the CEO role on June 1. The company said the position of chief operating officer has been eliminated as part of the restructuring.
According to a filing with the U.S. Securities and Exchange Commission, the workforce reductions will affect full-time employees, contractors, and hourly production workers. Lucid employed approximately 9,000 people globally at the end of 2025.
"These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions," a company spokesperson said in a statement. "They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time."
The latest cuts follow a previous round of layoffs announced in February, when the company reduced its U.S. workforce by roughly 12% as part of efforts to move closer to profitability.
Lucid said it expects to incur approximately $32 million in cash charges related to severance payments, employee benefits, and transition costs associated with the latest restructuring measures.
As part of the operational changes, the company will also eliminate the second production shift at its AMP-1 manufacturing facility in Arizona, a move that reflects efforts to better align vehicle production with current demand levels.
The announcement comes weeks after Lucid disclosed that newly appointed CEO Silvio Napoli would conduct a comprehensive review of the company's operations. The automaker subsequently suspended its financial guidance while management evaluates strategies to reduce elevated vehicle inventory levels and improve overall business performance.
Despite reporting growth in vehicle deliveries and revenue, Lucid continues to face significant financial challenges. The company reported a net loss of $2.7 billion on revenue of $1.35 billion in 2025. Its negative free cash flow reached $3.8 billion, representing a year-over-year increase of approximately 31%.
During its first investor day in nearly five years, held in March, Lucid reiterated its goal of achieving positive cash flow later this decade. However, the company acknowledged that market conditions remain difficult as demand growth for electric vehicles slows across several major markets.
The broader EV industry has experienced increasing pressure over the past year amid softer consumer demand, higher borrowing costs, and changing regulatory policies. Automakers are also adjusting to shifts in the U.S. policy environment, including the removal of the federal tax incentive worth up to $7,500 for eligible electric vehicle purchases.
Lucid's latest restructuring underscores the challenges facing premium EV manufacturers as they balance growth ambitions with the need to control costs and improve profitability in a rapidly evolving market.
