Tech news in 3 minutes
Lucid Motors’ new CEO cuts 18% of staff to ‘simplify the company’
Lucid Motors is laying off approximately 1,500 employees, or 18% of its workforce, just four months after cutting 12% of its staff. The company announced Monday that it has also eliminated the second production shift at its factory in Casa Grande, Arizona. The cuts are part of new CEO Silvio Napoli’s effort to “simplify the company, sharpen execution, and position Lucid to become more competitive over time.” The layoffs come as the U.S. electric vehicle market cools, with major automakers pulling EV models from their plans. Interim CEO Marc Winterhoff, who served for over a year until Napoli took over, has left the company. Winterhoff had previously been expected to stay on as chief operating officer, but Lucid has now eliminated the COO role entirely. This restructuring occurs as Lucid prepares to launch its first mass-market vehicle, the Lucid Cosmos SUV, later this year. The lower-cost EV is expected to start under $50,000 and aims to put the company on a path to profitability. Lucid is also entering the autonomous vehicle space, partnering with Uber and Nuro on a luxury robotaxi service slated to launch in San Francisco later this year. The company declined to comment on whether any programs are being mothballed. Lucid, a Saudi Arabia-owned publicly traded company, has seen more than a dozen top executives depart over the past two years. Former CEO Peter Rawlinson resigned abruptly in February 2025; Chief Engineer Eric Bach was let go in late 2025 and filed a wrongful termination lawsuit (now stayed pending arbitration); and another longtime employee, Emad Dlala, resigned earlier this month after a recent promotion. The latest cuts affect full-time employees, contractors, and hourly production workers. Lucid had 9,000 global employees at the end of 2025 before the February cuts. The company said the layoffs align “production plans with anticipated demand” and will generate annualized savings of about $158 million, with restructuring expected to complete by the third quarter of this year. Lucid will pay approximately $32 million in severance. Winterhoff will receive severance, “certain security support,” and keep his company vehicle.