Lucid Motors Cuts Its Workforce Significantly to Reduce Costs

After carrying out a considerable number of layoffs last February, the electric vehicle manufacturer Lucid Motors has announced a new reduction of its workforce by 18 percent. This decision forms part of an urgent effort to lower its annual fixed costs.

The measure was taken by Silvio Napoli, who became the new chief executive just three weeks ago. It is his first significant decision at the helm of the company, and it is undoubtedly painful for employees. Lucid Motors, which since its creation has recorded total losses of 16.4 billion dollars, is once again significantly shrinking after the 12 percent cut made in February. At that time, the workforce stood at around 9,000 workers at the end of 2025, although the exact number of people affected across these two rounds has not been detailed.

As part of the adjustments, the company has eliminated the second shift at its AMP-1 plant in Casa Grande, Arizona. This decision reflects that current production exceeds real demand and that accumulated inventories need to be reduced. The fact that it is cutting an entire shift, rather than slowing the line or stopping temporarily, shows the gap between previous projections and market reality.

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The main goal remains the same: cutting costs and moving toward profitability. In the first quarter of 2026, Lucid Motors recorded a net loss of 1.13 billion dollars on revenue of just 282.5 million. In other words, losses quadrupled revenue.

The new austerity plan driven by Napoli is expected to generate annual savings of around 158 million dollars. According to a document filed with the U.S. Securities and Exchange Commission (SEC), the costs associated with severance, benefits and transition support for employees would amount to about 32 million dollars.

The company’s future depends in the short term on its current models, the luxury saloon Lucid Air and the Gravity SUV. Over the longer term, the company plans to launch new, more affordable models in the mid-size segment. Among them will be the Cosmos and Earth SUVs, joined by a third vehicle still without a name and a robotaxi.