Lucid Motors trims staff, moves focus to future affordable SUV

Lucid Motors is making big changes to its team. The electric car company announced it is cutting its workforce by 12%. This decision was revealed by an internal memo shared with employees. Unsurprisingly, the company wants to make its operations run smoother and save money. Losing a job is never good news, but Lucid says this decision is necessary to help the brand finally start making a profit.

Even though many people are leaving, the workers who build the cars are staying. The layoffs do not include hourly employees in manufacturing, logistics, or quality control. This means the people actually putting the electric cars together are still on the job. Based on the 6,800 full-time workers Lucid had at the end of 2024, these cuts likely affect several hundred people and it means the company is trying to keep its factories running at full speed while thinning out the office staff.

Marc Winterhoff, who is currently leading the company as interim CEO, sent a message to the team about the news. He mentioned that saying goodbye to coworkers is a difficult task. To help those leaving, Lucid is offering severance pay, bonuses, and health benefits. They are also providing support to help these workers find new jobs. It is a tough time for the company, especially since they still do not have a permanent CEO after Peter Rawlinson left in early 2025.

The timing of these cuts is interesting because Lucid is very busy right now with the production of the Lucid Gravity still ramping up. This large SUV is a major part of their plan to grow. In the beginning, the company had some trouble making the Gravity quickly and keeping the quality high. Those issues have now been fixed, and the production numbers have already doubled. Keeping the factory workers on board shows that the Lucid Gravity remains a top priority.

Lucid has another important project in the works - the launch of a new, smaller EV. This mid-size car is expected to cost under $50,000. This is a big deal because most electric cars from Lucid have been very expensive so far. A more affordable model could help the brand reach many more drivers who want a luxury battery-powered vehicle without the six-figure price tag.

Lucid is also looking into the future of driving. They are working with companies like Uber and Nuro to start a robotaxi service. The plan is to test these self-driving cars in San Francisco later this year, showing that despite the layoffs, Lucid still wants to be a leader in technology and software.

The company's leadership has seen a lot of movement lately. Since the former CEO resigned, several other high-level executives have left the company. There was even a legal battle with a former chief engineer. Despite all this noise in the front office, Winterhoff insists that the company's main goals have not changed. He says they are staying focused on their new car platforms and expanding into new markets around the world.

This coming Tuesday, Lucid will share its financial results for 2025. Investors will be watching closely to see if these staff cuts and the focus on the Lucid Gravity are helping the company's bank account. Building EVs is an expensive business, and Lucid is trying hard to prove it can be both a tech leader and a profitable manufacturer. For now, the company is betting that a smaller team can reach those big goals faster.

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