Lucid Group Inc. (NASDAQ:LCID) is cutting 12% of its global workforce as the luxury EV maker moves to streamline operations and push closer to profitability after a turbulent year.
The reductions, expected to impact hundreds of employees, are designed to “operate with greater efficiency and deliver on commitments to gross margin improvement and long-term growth,” a spokesperson for the company told Benzinga in an emailed statement.
Lucid had about 6,800 full-time employees at the end of 2024, suggesting the layoffs will affect a significant portion of its salaried staff. Hourly workers at its Arizona production facility are not included in the cuts, the spokesperson added.
The news was first reported by TechCrunch, citing an internal memo from interim CEO Marc Winterhoff.
Production Snags, CEO Change Hit Stock
The move follows a difficult 2025 marked by production challenges, supply-chain pressures, rising costs, and broader volatility across the auto sector. Lucid is in the midst of ramping output of its Gravity SUV after early manufacturing and quality hurdles and is preparing to launch a more affordable mid-size EV platform. The company currently makes two vehicles, a luxury Air sedan and the Gravity SUV.
Lucid produced roughly 18,300 vehicles last year, more than double the prior year, as it works to scale operations. The company is also advancing its autonomous ambitions through a partnership with ride-hailing firm Uber Technologies Inc. (NYSE:UBER) and Nuro Inc. to deploy a robotaxi fleet in the San Francisco area.
The restructuring comes nearly a year after former CEO Peter Rawlinson suddenly stepped down. The company has seen a significant amount of turnover in its executive ranks since, including the loss of its chief engineer, Eric Bach.
Price Action: The NASDAQ-listed stock has lost over 14% of its value in the past year, having closed down 2.05% at $9.55 on Friday. The company is scheduled to report fourth-quarter earnings on Feb. 24, after markets close.
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