California-based electric vehicle manufacturer Lucid Motors has confirmed a significant workforce reduction, laying off 12 per cent of its employees. The company stated the move is intended to streamline operations and enhance its path toward profitability.
The job cuts, first reported by TechCrunch based on an internal company memo, were subsequently confirmed by multiple news outlets, including Reuters. According to the memo obtained by TechCrunch, the layoffs are a strategic decision to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability.”
Leadership Acknowledges Difficult Decision
Marc Winterhoff, Lucid Motors’ interim CEO, acknowledged the gravity of the situation in the internal memo. “Saying goodbye to colleagues is never easy,” he stated. “We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.”
Scope of Workforce Reduction
While the exact number of affected employees has not been officially disclosed, the 12 per cent reduction is reportedly applied to the company’s US-based staff. As of the end of 2024, Lucid Motors reported having 6,800 full-time employees globally. This figure encompasses its headquarters in Newark, California, a satellite office in Michigan, manufacturing facilities in Arizona, and retail locations across the United States, Canada, Europe, Saudi Arabia, and the United Arab Emirates.
If the 2024 employee count remains representative, the layoffs could affect as many as 800 individuals. Lucid Motors has indicated that the job cuts will not impact hourly workers in its manufacturing, logistics, and quality assurance teams.
Company Background and Financial Landscape
Founded in 2016 with the mission to “build the world’s best cars and accelerate the shift to clean energy,” Lucid Motors has introduced two premium electric vehicles: the flagship Lucid Air sedan and the recently launched Gravity SUV. However, the company has faced considerable challenges in a market where demand for high-priced luxury EVs has softened, leading to mounting financial losses.
According to Lucid’s most recent financial disclosures in November 2025, its accumulated deficit from its inception through the third quarter of 2025 had reached nearly US$14.8 billion. This financial backdrop underscores the company’s ongoing efforts to achieve sustainable profitability.
Recent Production and Delivery Figures
Despite the financial pressures, Lucid Motors concluded 2025 with positive momentum in production and deliveries. In the fourth quarter of 2025, the company produced 8,412 vehicles, marking a significant 116 per cent increase from the preceding quarter. Deliveries also saw a substantial rise, with 5,345 vehicles shipped, up 31 per cent compared to the third quarter.
For the full year 2025, Lucid produced a total of 18,378 vehicles, representing a 104 per cent year-on-year increase. Deliveries for the entire year reached 15,841 vehicles, a 55 per cent increase over 2024.
Future Strategy and Product Development
The increased sales figures in 2025 were partly attributed to the ramp-up in production and delivery of the Gravity SUV. Looking ahead, Lucid Motors is placing significant emphasis on the anticipated launch of a mid-size EV model later this year. This new model is expected to be priced around US$50,000, a notable reduction from Lucid’s current offerings.
This strategic pricing adjustment aims to broaden the company’s market appeal. The Gravity Touring SUV currently starts at US$79,990, while the entry-level Lucid Air is priced from US$70,900. Highly optioned versions of the Lucid Air can surpass US$249,000, highlighting the premium positioning of its existing lineup.