Lucid Motors will cut 705 jobs in Arizona, most of them at its Casa Grande factory, as part of a roughly 18% reduction of its US workforce, according to a notice filed with state labor authorities.
The layoffs also reached and Michigan, where Lucid runs an engineering hub, the company said.
As of early Wednesday, Lucid has not yet disclosed how many jobs will go at its Newark, California headquarters.
EV exclusively reported the layoffs on Monday, and the Saudi-backed maker of luxury electric vehicles confirmed them hours later in a filing with the Securities and Exchange Commission.
The reduction is the company’s second this year and the first to reach its production workforce. The previous one impacted about 12% of the staff and took place last February.
Arizona Filing
Lucid filed the notice with the Arizona Department of Economic Security on June 22, the same day it disclosed the cuts to regulators.
The notice covers 705 positions, concentrated at the Casa Grande plant, the company’s only US factory, with some related Arizona operations also affected.
The roles include full-time employees, contractors and hourly production workers.
The cuts are tied to the elimination of a second production shift at Casa Grande that Lucid had added in late 2025 to raise output.
The reductions are expected to be substantially complete by the end of the third quarter and come as the company seeks to simplify and match teams with the demand for Lucid vehicles, according to the premium brand.
Arizona has no state equivalent to California’s plant-closing law, so the notice falls under the federal Worker Adjustment and Retraining Notification Act, which requires 60 days’ advance notice of mass layoffs.
Michigan Impact
In Michigan, the cuts were smaller and centered on Southfield, where Lucid operates a metro Detroit engineering hub.
“The action was limited to a small number of Michigan-based employees,” a company spokesperson told Crain’s Detroit Business.
“This does not change our commitments to the state, and we expect to see continued growth in Michigan in the coming years,” the spokesperson said.
Lucid announced the hub in early 2024, with plans for a $10 million operation and 260 jobs, supported by a $6 million state grant.
The company has since created 259 jobs paying an average of $142,421 a year, according to the Michigan Economic Development Corporation.
“No funds have yet been disbursed to Lucid, and the company has indicated it still intends to meet its commitments to the State of Michigan,” MEDC spokeswoman Danielle Emerson told Crain’s.
California Pending
Lucid has not yet filed a layoff notice in California, home to its Newark headquarters.
No filing for the latest round had appeared in the state Employment Development Department’s public WARN listing as of June 24.
Spokesperson Jesse Caputo had said on Monday that Lucid planned to file the California notice later that day.
The agency publishes that report twice a week, on Tuesdays and Thursdays, so a filing could appear in the coming days.
The only Lucid entry currently listed is the February round, which covered 319 employees in Newark and took effect on April 21.
A change to California law this year also requires such notices to set out the support a company will offer departing workers.
Cost Cuts Under New CEO
Lucid said the reduction would save about $158 million a year, against roughly $32 million in cash charges, EV reported when it detailed the $158 million savings target.
“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” spokesperson Jesse Caputo 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,” he added.
Lucid has pointed to waning demand for its cars, along with tariffs and policy changes that have weighed on electric-vehicle sales.
The company cut 12% of its global workforce in February, a round that spared production staff.
This is the fourth formal workforce reduction at Lucid since 2023.
The company shed about 1,300 jobs in March 2023 and around 400 more in May 2024.
Lucid had about 9,000 employees at the end of 2025, suggesting the two rounds together may have eliminated about 2,500 jobs.
The latest filing also confirmed that Lucid had eliminated the chief operating officer role and that Marc Winterhoff had left the company weeks after returning to it.
The cuts are being made under Chief Executive Silvio Napoli, who took the role this year and launched an operational review.
Lucid suspended its full-year production forecast last month.
Hiring has slowed sharply, with open roles down about 76% from a year earlier.
The company is also defending a federal securities class action tied to a supplier defect that halted Gravity SUV deliveries for 29 days earlier this year.
The company has also seen a series of senior departures, including engineering and software chief Emad Dlala and its head of integrated marketing.
Lucid shares have fallen to successive record lows in recent weeks, trading near $5 and leaving the company’s market value just above $2 billion.
Saudi Arabia’s Public Investment Fund, which owns more than half the company, has funded the business through repeated capital raises.
Lucid, which builds the Air sedan and Gravity SUV, is also weighing a reduction of up to 40% in its European operation, where it registered 35 vehicles in May, according to EV data, leaving its sales and service network in the region heavily underused.
The company is leaning on an expanded robotaxi partnership with Uber, now covering at least 35,000 vehicles, as a route to scale its demand, and retail sales have not delivered.
