Lucid Motors is laying off 12% of its workforce as the Saudi-backed EV maker prepares to launch its third model later this year.
According to an internal memo first reported by TechCrunch, Interim CEO Marc Winterhoff told employees the cuts are intended to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability.”
The cuts come as Lucid prepares to expand into several new markets, including the UK, Spain, France, and others in Europe, but also new countries across the Gulf region.
Sales across its four existing European markets have remained minimal, and the company is adjusting its cost structure ahead of the broader rollout.
“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote in the internal message sent on Friday. [full memo available at the end of the story]
“Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies,” he added.
Hourly workers on the manufacturing, logistics, and quality teams are not affected.
The company did not disclose an exact number in the memo.
Lucid reported 6,800 full-time employees globally at the end of 2024, suggesting the cuts could affect roughly 800 workers.
The number of employees as of the end of 2025 is expected to be revealed in a SEC filing later this month.
The layoffs mark the third formal round of workforce reductions since March 2023, when then-CEO Peter Rawlinson cut approximately 1,300 employees — roughly 18% of staff.
A second round in May 2024 eliminated about 400 positions, or 6% of the workforce, at a time when the company warned its cash reserves would last only 12 more months.
Separately, interim CEO Winterhoff confirmed at CES in January that he had “replaced the whole software leadership team” — described as “more than a handful” of departures — as Lucid scrambled to fix persistent quality issues with its Gravity SUV.
Winterhoff said the company’s strategy remains unchanged.
“Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform,” he wrote in the memo, adding that Lucid is also focused on expanding into the robotaxi market, continuing software development, and growing Gravity and Air sales globally.
The cuts come four days before Lucid is scheduled to report full-year 2025 financial results on February 24.
The company produced 18,378 vehicles last year, more than double its 2024 output, but continued to post heavy losses — reporting a combined net loss of $2.56 billion through the first three quarters alone.
Lucid has been without a permanent CEO for nearly a year.
Rawlinson abruptly left on February 25, 2025, and the company has since lost most of its senior leadership.
As EV exclusively reported in November, chief engineer Eric Bach was ousted after more than a decade and subsequently sued the company for wrongful termination and discrimination.
A total of 13 C-suite officers or vice presidents have departed since October 2023, including the CFO, general counsel, and heads of strategy, software, and supply chain.
The company is preparing to launch a mid-size crossover later this year, priced around $50,000, which management views as the vehicle that will drive Lucid toward volume production.
It is also collaborating with Uber and autonomous vehicle company Nuro on a robotaxi service planned for the San Francisco area.
Lucid‘s majority shareholder, Saudi Arabia’s Public Investment Fund, holds approximately 58.4% of outstanding shares.
In November, Lucid raised $975 million through convertible notes and expanded its PIF credit facility from $750 million to $2 billion, extending its liquidity runway.
Below is the full memo sent by the Interim Chief Executive.
“Team;
Today I want to share an important business update. We have implemented a 12% reduction of our U.S. workforce, excluding hourly production employees in manufacturing, logistics, and quality.
This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability. If you are receiving this message, your role is not impacted.
We are streamlining our organization so we can operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth.
We will continue to evaluate our day-to-day work to ensure that our time, energy, and resources remain focused on the initiatives that drive the greatest impact. This disciplined approach to execution is a core operational imperative for Lucid.
Importantly, today’s actions do not affect our strategy. Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform.
With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies.
Saying goodbye to colleagues is never easy. We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.
As we move through today, I ask everyone to treat one another with empathy, professionalism, and respect, recognizing the personal impact these changes have on our teammates.
To sustain and build on progress made in 2025, we must remain focused, operate with discipline, and execute with urgency.
I know we are asking a great deal of our team, and I sincerely appreciate your continued commitment, resilience, and professionalism.
I will address today’s actions and answer questions during Monday’s Town Hall. As always, you may presubmit your questions on The Hub.
Warm regards,
Marc”
