Lucid electric vehicles are presented at the New York International Auto Show on April 2, 2026.
Danielle DeVries | CNBC
Lucide Group announced Monday that it would reduce its U.S. workforce by about 18% as part of a cost-saving plan.
The all-electric vehicle maker said its plan would deliver annualized savings of about $158 million.
The company also announced Monday that its chief operating officer, Marc Winterhoff, is leaving the company effective immediately. Winterhoff was interim CEO of the company until Silvio Napoli took over as CEO on June 1. The COO role has been eliminated, Lucid said.
Lucid’s workforce reductions include full-time employees, contractors and hourly production workers in the manufacturing sector, according to a filing with the Securities and Exchange Commission. The automaker had around 9,000 employees worldwide as of December 31.
“These are difficult decisions made to align production with demand, reduce inventory and adapt to declining market conditions,” a Lucid spokesperson said in a statement. “They are part of a broader effort to simplify the business, refine execution and position Lucid to become more competitive over time.”
In February, Lucid laid off about 12% of its U.S. workforce in an effort to improve profitability.
Lucid said Monday that it expects to incur cash charges of approximately $32 million related to severance, benefits and employee transitions associated with the latest cuts, according to its filing.
The automaker also announced it would eliminate the second production shift at its AMP-1 plant in Arizona.
Lucid said last month that Naples would evaluate the company’s business operations. As a result, it suspended its forecast, adding that it needed to reduce its “high inventory” of vehicles, which for automakers has historically meant decreasing or idling vehicle production.
Lucid held its first investor day in nearly five years in March. The company said at the time that it expected to be cash flow positive by the end of the decade.
Although Lucid managed to increase sales and reduce losses, the company lost $2.7 billion on revenue of $1.35 billion in 2025. It reported negative free cash flow of $3.8 billion last year, about 31% more than the year before.
Lucid and its electric vehicle peers are increasingly facing a tougher market than in recent years, amid slower-than-expected adoption of electric vehicles and regulatory changes under the Trump administration. including the elimination of a $7,500 federal incentive for the purchase of an electric vehicle.
—CNBC Michael Wayland contributed to this report.