EV maker Lucid cuts jobs, eliminates COO role to save $158 million annually

Lucid Group is cutting approximately 18% of its US workforce and eliminating the role of chief operating officer as part of a restructuring programme designed to generate around $158 million in annualised cost savings.

The electric vehicle maker disclosed the measures on June 22, saying the changes are intended to align production with demand, reduce inventory levels and improve competitiveness in an increasingly challenging market for EV manufacturers.

New leadership team moves quickly to reshape operations

The company said Marc Winterhoff, its chief operating officer, is leaving with immediate effect. Winterhoff had served as interim chief executive before Silvio Napoli formally assumed the CEO role on June 1.

Lucid also confirmed that the position of chief operating officer has been eliminated as part of the restructuring.

The changes come weeks after Napoli announced a review of the company's operations and business priorities. CNBC reported in May that Lucid had suspended its guidance while assessing its business and inventory position.

Workforce reduction extends across multiple employee groups

The job cuts will affect full-time employees, contractors and hourly production workers in manufacturing operations.

Lucid employed approximately 9,000 people globally as of December 31, 2025.

The company said it expects to record approximately $32 million in cash charges related to severance payments, employee benefits and transition costs associated with the workforce reduction.

A company spokesperson described the move as part of a broader effort to simplify operations and sharpen execution.

"These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions," the spokesperson said in a statement reported by CNBC.

Production changes accompany cost-saving push

Alongside the workforce reductions, Lucid said it will eliminate the second production shift at its AMP-1 manufacturing facility in Arizona.

The company has been working to reduce what it previously described as elevated inventory levels. In the automotive industry, inventory reduction is often achieved by slowing production or temporarily idling manufacturing capacity.

Key details announced by Lucid include:

• US workforce reduction: Approximately 18%

• Annualised cost savings target: Approximately $158 million

• Expected restructuring charges: Approximately $32 million

• Operational change: Elimination of second production shift at AMP-1 factory

• Leadership change: Marc Winterhoff departs and the COO role is removed

• Global workforce as of December 2025: Approximately 9,000 employees

Second major round of layoffs in months

The latest cuts follow another workforce reduction announced earlier this year.

Lucid laid off approximately 12% of its US workforce in February as part of efforts to improve profitability.

Despite making progress in growing vehicle sales and narrowing losses, the company continues to face significant financial pressures.

According to figures cited by CNBC:

• 2025 revenue: $1.35 billion

• 2025 net loss: $2.7 billion

• 2025 negative free cash flow: $3.8 billion

• Increase in negative free cash flow from previous year: Approximately 31%

EV industry faces tougher demand environment

Lucid's restructuring reflects broader pressures across the electric vehicle sector.

Automakers have been contending with slower-than-expected EV adoption rates, higher operating costs and shifting regulatory conditions in the United States.

Changes under the Trump administration, including the elimination of the $7,500 federal incentive for EV purchases, have added further uncertainty for manufacturers seeking to accelerate adoption.

Lucid remains committed to achieving positive cash flow later this decade, a target it reiterated during its investor day in March. The success of the latest restructuring efforts will likely be measured by how effectively the company can reduce costs, manage inventory and improve financial performance while sustaining growth in an increasingly competitive EV market.