Electric vehicle manufacturer Lucid Group has announced plans to reduce approximately 18 percent of its U.S. workforce as part of a major restructuring initiative aimed at improving profitability amid mounting competition in the global EV market. The move marks the company’s second significant round of job cuts in 2026, following a 12 percent workforce reduction announced in February.
Lucid said the layoffs will impact full-time employees, contractors, and hourly manufacturing workers. The company is also eliminating the second production shift at its AMP-1 factory, its primary electric vehicle manufacturing facility in Arizona. As of December 2025, Lucid employed approximately 9,000 people globally.
The restructuring is expected to generate annual cost savings of around $158 million, although Lucid anticipates incurring approximately $32 million in severance and employee-related charges. The workforce reduction is expected to be substantially completed by the end of the third quarter of 2026.
The announcement coincides with another major leadership change at Lucid. Chief Operating Officer Marc Winterhoff has departed the company, becoming the second senior executive transition in recent months. Marc Winterhoff had served as interim CEO following the departure of Peter Rawlinson in February 2025 before Silvio Napoli assumed the CEO role in April 2026.
Lucid has been facing operational and market challenges, including supplier-related disruptions that affected deliveries of its Gravity SUV and a recent suspension of its 2026 production outlook pending a business review. The company continues to rely on the Gravity SUV and its upcoming mid-size EV platform as key growth drivers. It is also pursuing future mobility opportunities through partnerships with ride-hailing company Uber and autonomous driving startup Nuro to develop robotaxi services.