Lucid Motors is cutting 12% of its workforce as it pursues profitability | TechCrunch

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 production, logistics and quality teams will not be affected by the cuts, according to the memo, which was sent to employees spared by the layoffs. It is unclear exactly how many employees will be laid off, but it is likely in the hundreds. Lucid Motors reported that it has 6,800 full-time employees worldwide end of 2024.

“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff writes in the memo. “We are grateful for the contributions of those affected by today’s actions, and we are providing severance packages, bonuses, continued health benefits and transition support to help them through this period.”

The cuts come as the company is ramping up production and deliveries of its Gravity SUV. While Lucid Motors struggled with Gravity production and quality issues in the first few months, the company was able to pick up the pace and ultimately double its 2024 production last year.

The company is also preparing to launch a more affordable mid-size EV later this year, expected to cost around $50,000. It’s partnering with Uber and autonomous vehicle company Nuro to also launch a robotaxi service in the San Francisco area this year. The company will announce its 2025 financial results next week.

“Importantly, today’s actions do not impact our strategy,” Winterhoff wrote in the memo. “Our core priorities remain unchanged and we remain focused on commencing 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 Lucid Gravity and Air sales in existing and new regions.”

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