"Align production with demand, reduce inventory, and adapt to declining market conditions."

Lucid Group Slashes Workforce by 18%, Eliminates COO Role in Major Restructuring

Lucid Group has announced a sweeping restructuring plan, including an approximately 18% reduction of its U.S. workforce and the elimination of the Chief Operating Officer position. The moves are designed to align production with demand and significantly reduce costs.

Workforce Reduction

The company is cutting roughly 1,500 employees across all categories—full-time staff, contractors, and hourly production workers. This marks the second round of cuts in 2025, following a 12% reduction in February.

Executive Changes

Chief Operating Officer Marc Winterhoff has left the company effective immediately, and the COO position has been eliminated entirely. Winterhoff, who previously served as interim CEO until Silvio Napoli took the helm on June 1, will receive severance, security support, and retain his company vehicle.

Production & Financial Implications

In line with the downsizing, Lucid will eliminate the second shift at its AMP-1 factory in Casa Grande, Arizona.

The company expects to realize annualized cost savings of approximately $158 million from the restructuring. However, it anticipates cash charges of about $32 million related to severance, employee benefits, and transitions. In 2025, Lucid reported a loss of $2.7 billion on revenue of $1.35 billion, with negative free cash flow of $3.8 billion.

Company Statement

CEO Silvio Napoli described the plan as an effort to "simplify the company, sharpen execution, and position Lucid to become more competitive over time."

A company spokesperson stated the decisions are intended to "align production with demand, reduce inventory, and adapt to declining market conditions." The restructuring is expected to be completed by the third quarter of 2025.

Background & Context

The layoffs come as the U.S. electric vehicle market has cooled, prompting major automakers to adjust their EV plans. In March, Lucid held its first investor day in nearly five years, projecting cash-flow positivity by later this decade. Last month, CEO Napoli was tasked with evaluating operations, which led to suspended guidance and an acknowledgment of elevated vehicle inventory.

Looking ahead, Lucid is working toward the launch of its first mass-market vehicle, the Lucid Cosmos SUV, later this year, with a starting price under $50,000. The company is also partnering with Uber and Nuro to launch a luxury robotaxi service in San Francisco.

Notably, over the past two years, more than a dozen top executives have left the company, including former CEO Peter Rawlinson, former Chief Engineer Eric Bach, and former top executive Emad Dlala.