Lucid Motors will lay off about 12% of its global workforce as the U.S. electric vehicle manufacturer attempts to streamline operations and improve financial performance, according to an internal communication from its interim chief executive.
The California-based company, known for its premium Air sedan and Gravity SUV, has struggled with persistent losses despite rising vehicle deliveries. In the third quarter of 2025 alone, Lucid reported a net loss of $978.4 million, bringing cumulative losses since its founding to about $14.8 billion by the end of September 2025.
“We are streamlining our organisation so we can operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth,” interim CEO Marc Winterhoff said in an internal email to employees cited by U.S. media outlets.
Lucid said production staff would largely be spared, with reductions focused primarily on office-based roles. The company reported about 6,800 employees worldwide at the end of 2024; if staffing levels have remained similar, the cuts could affect more than 800 workers. Those impacted are expected to receive severance packages, bonuses, continued health benefits, and transition assistance.
“Saying goodbye to colleagues is never easy,” Winterhoff wrote, adding, “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.”
Lucid’s financial challenges persist despite backing from its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF), which expanded a delayed-draw credit facility from $750 million to roughly $2 billion, temporarily strengthening liquidity. The company has not yet released its fourth-quarter 2025 results, scheduled for publication on Feb. 24, 2026.
Vehicle deliveries rose about 55% in 2025 to nearly 16,000 units, supported by the first full year of Gravity SUV shipments. However, production volumes remain below levels needed for profitability. Lucid is banking on a planned mid-range SUV, expected to be priced between $48,000 and $50,000, to broaden its market reach.
“Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform,” Winterhoff said. He added that the company is also pursuing expansion into the robotaxi sector, advancing driver-assistance software, and growing sales of its existing models in new markets.
Source: Reuters, TechCrunch
