Lucid electric vehicles are seen at the New York International Auto Show on April 2, 2026.Danielle DeVries | CNBCLucid Group said Monday it is cutting its U.S. workforce by approximately 18% as part of a cost-savings plan.The all-electric vehicle maker said its plan would give it annualized cost savings of approximately $158 million.The company also said Monday that its chief operating officer, Marc Winterhoff, is leaving the company effective immediately. Winterhoff was interim CEO at the company until Silvio Napoli took over the top job on June 1. The role of COO has been eliminated, Lucid said. Lucid's workforce reductions include full-time employees, contractors and hourly production workers in manufacturing, according to a filing with the Securities and Exchange Commission. "These are difficult decisions taken 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 company, sharpen execution, and position Lucid to become more competitive over time."The automaker also said it would be eliminating the second shift of production at its AMP-1 factory in Arizona.Lucid expects to incur cash charges of approximately $32 million related to severance, employee benefits and employee transition, according to its filing.The company said last month that Napoli would be evaluating the company's business operations. It suspended its guidance as a result, adding that it needs to lower its "elevated 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. It said at the time that it expects to be cash-flow positive by later this decade.While Lucid has been able to increase sales and narrow losses, the company lost $2.7 billion on revenue of $1.35 billion in 2025. It had negative free cash flow of $3.8 billion last year, roughly 31% larger than the year earlier.— CNBC's Michael Wayland contributed to this report.
Lucid to lay off roughly 18% of U.S. workforce, COO Marc Winterhoff leaves
Lucid Group is cutting its U.S. workforce by 18% as part of a cost-savings plan. It also said COO Marc Winterhoff is departing effective immediately.
TL;DRAI
Lucid cuts 18% U.S. workforce targeting $158M savings; $2.7B loss on $1.35B revenue forces production restructuring. Demand overestimation and overcapacity in premium EV create unsustainable burn ($3.8B negative FCF 2025); hardware-heavy startups must validate market size before scaling production.
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