Lucid cuts workforce again as EV maker tries to save $158m ahead of Cosmos SUV launch

Lucid is cutting 18% of its US workforce and reducing vehicle production in Arizona as the electric vehicle startup moves to lower costs and manage rising inventory, according to a filing submitted to regulators.

The latest move marks the second major round of layoffs this year for the company, which launched the Gravity SUV last year and is preparing to unveil its next model, the Cosmos SUV.

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Workforce Restructuring Targets Cost Savings

The company said the layoffs will affect full-time employees, contractors, and hourly production workers. As of Dec. 31, Lucid employed about 9,000 people globally.

The new cuts follow another reduction announced in February when Lucid laid off about 12% of its U.S. workforce.

The broader restructuring plan is expected to save approximately $158 million, according to the filing.

As part of the plan, Lucid is also ending the second production shift at its Casa Grande, Arizona factory, where both the Air sedan and Gravity SUV are built.

Leadership Shake-Up Continues at Lucid Motors

The company is also making major changes to its executive structure.

Former Chief Executive Officer Peter Rawlinson stepped down earlier this year. Now, Chief Operating Officer Marc Winterhoff, who briefly served as interim CEO, has left the company as well.

Lucid is eliminating the COO position entirely.

The automaker has also recently lost several senior engineering leaders, including Emad Dlala, senior vice president of powertrain and engineering, and Zach Walker, who led development of the platform for future SUV models.

Future Hinges on SUV Production

Despite the restructuring, Lucid remains focused on growth.

The company said the Cosmos SUV is expected to be revealed this summer. The vehicle is designed to compete with the Tesla Model Y and is expected to start below $50,000.

Lucid is targeting a drag coefficient of 0.22 and more than 300 miles of driving range.

The Cosmos is expected to reach customers in 2027 and will be followed by two additional SUVs built on the same platform, including the Earth SUV and a more off-road-focused model.

For now, Lucid’s challenge is balancing aggressive cost reductions with the need to deliver new products capable of driving future sales in the increasingly crowded Electric Vehicle Market.