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

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

Hourly workers in the production, logistics and quality teams are not affected by the cuts, according to a memo sent to employees who were separated due to layoffs. It is not clear exactly how many workers are being laid off, but it is likely to be in the hundreds. Lucid Motors announced that it has 6,800 full-time employees worldwide by the end of 2024.

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

The cut comes as the company is in the midst of ramping up production and deliveries of its Gravity SUV. While Lucid Motors struggled with Gravity’s production and quality issues in the first few months, the company was able to pick up the pace and last year finally doubled its 2024 production.

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

“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote in a statement. “Our core priorities remain unchanged and we remain focused on starting production of our mid-size platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growing Lucid Gravity and Air sales in existing and new geographies.”

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