Lucid Motors is cutting 12% of its workforce in pursuit of profitability

Lucid Motors is laying off 12% of its workforce in an effort to “improve operational effectiveness and optimize our resources as we continue on our path to profitability,” according to an internal memo obtained by TechCrunch.

Hourly workers on the manufacturing, logistics and quality teams are not affected by the cuts, according to the memo, which was sent to employees who survived the layoffs. It’s unclear exactly how many workers will be laid off, but it is likely in the hundreds. Lucid Motors reported that it had 6,800 full-time employees globally at the end of 2024.

“Saying goodbye to colleagues is never easy,” interim CEO Mark Winterhoff wrote in the memo. “We are grateful for the contributions of those affected by today’s actions, and are offering severance pay, bonuses, ongoing health benefits and transition support to help them during this time.” The company did not immediately respond to a request for comment.

The reductions come at a time when the company is intensifying the production and delivery of its Gravity SUV. While Lucid Motors struggled with Gravity production and quality issues during the first few months, the company was able to pick up the pace, eventually doubling its 2024 production last year.

The company is also preparing to launch an affordable mid-size electric car later this year that is expected to cost around $50,000. It’s teaming up with Uber and autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco area this year as well. The company is scheduled to announce its financial results for 2025 next week.

“It is important that today’s actions do not impact our strategy,” Winterhoff wrote in the memo. “Our core priorities remain unchanged, and we remain focused on getting into production of our mid-sized platform. Through disciplined execution, we are also focused on further expansion of the robotaxi market, continued development of driver assistance systems and software, and growth in Lucid Gravity and Air sales across existing and new geographies.”

Lucid Motors has now gone almost a full year without a permanent CEO. Peter Rawlinson, who was the company’s CEO and CTO, resigned abruptly on February 25, 2025. Since then, Lucid Motors has seen a significant amount of turnover in its executive ranks, including the loss of its chief engineer, who sued the company in December for wrongful termination and discrimination. (Lucid Motors called his legal claims “ridiculous.”)