Lucid Motors Cuts 12% of Workforce in Profitability Push

Layoffs affect hundreds of full-time workers as the electric vehicle maker ramps up production and prepares to launch new models.

Published on Mar. 1, 2026

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Lucid Motors is laying off 12% of its global workforce, or hundreds of full-time employees, in a bid to 'improve operational effectiveness and optimize our resources as we continue on our path toward profitability,' according to an internal memo obtained by TechCrunch. The cuts will not affect hourly workers on the manufacturing, logistics, and quality teams.

Why it matters

The layoffs come as Lucid Motors is ramping up production and deliveries of its Gravity SUV and preparing to launch a more affordable mid-size EV later this year. The company is also collaborating on a robotaxi service in the San Francisco area, underscoring the need to control costs as it expands its product lineup and business ventures.

The details

In the internal memo, interim CEO Marc Winterhoff said 'Saying goodbye to colleagues is never easy,' but that the company is providing severance, bonuses, continued health benefits, and transition support to the impacted workers. Lucid Motors reported having 6,800 full-time employees globally at the end of 2024, so the layoffs likely affect several hundred people.

  • Lucid Motors reported having 6,800 full-time employees globally at the end of 2024.
  • The company is scheduled to release its financial results for 2025 next week.

The players

Lucid Motors

An American electric vehicle company that designs, engineers, and manufactures luxury electric vehicles, powertrains, and battery systems.

Marc Winterhoff

The interim CEO of Lucid Motors who announced the layoffs in an internal memo.

Peter Rawlinson

The former CEO and chief technical officer of Lucid Motors who abruptly resigned in February 2025.

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What they’re saying

“Saying goodbye to colleagues is never easy. We are grateful for the contributions of those impacted by today's actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.”

— Marc Winterhoff, Interim CEO (Internal memo)

What’s next

Lucid Motors is scheduled to release its financial results for 2025 next week, which will provide more insight into the company's performance and the rationale behind the workforce reduction.

The takeaway

The layoffs at Lucid Motors highlight the challenges electric vehicle startups face in achieving profitability, even as they ramp up production and expand their product lineups. The company's efforts to control costs and optimize resources will be closely watched as it navigates a competitive EV market.