Lucid Cuts 18% Of U.S. Workforce As COO Departs And Cost-Saving Efforts Intensify

Lucid Group is reducing its U.S. workforce by approximately 18% as the luxury EV maker pushes to lower costs and improve efficiency amid challenging market conditions.

The company expects the restructuring plan to generate roughly $158 million in annualized savings and confirmed that Chief Operating Officer Marc Winterhoff has departed effective immediately, with the COO position being eliminated.

Workforce Reduction Targets Costs And Inventory Levels

The latest cuts affect full-time employees, contractors, and hourly manufacturing workers across Lucid’s U.S. operations. According to the company, the workforce reduction is part of a broader effort to align production with current demand levels, reduce inventory, and streamline operations.

Lucid employed approximately 9,000 people globally at the end of 2025, making this one of the company’s largest restructuring moves to date, according to CNBC. The automaker said it expects to incur about $32 million in one-time cash charges related to severance, employee benefits, and transition costs associated with the layoffs.

The company also confirmed that it will eliminate the second production shift at its AMP-1 manufacturing facility in Arizona. The move follows comments from newly appointed CEO Silvio Napoli, who stated last month that Lucid would conduct a comprehensive review of its business operations. As part of that process, the company suspended its guidance and acknowledged the need to address elevated vehicle inventory levels.

A Lucid spokesperson said the changes are intended to simplify the organization, improve execution, and strengthen the company’s long-term competitiveness.

Leadership Changes Come Amid Profitability Push

The restructuring announcement also marks a significant leadership change. Marc Winterhoff, who served as interim CEO before Napoli assumed the role on June 1, has left the company. Lucid said the COO position itself has been eliminated as part of the organizational overhaul.

The latest cost-cutting measures come just months after Lucid reduced its U.S. workforce by approximately 12% in February as part of an earlier effort to move closer to profitability.

Lucid has made progress growing deliveries and narrowing losses, but the company continues to face significant financial challenges. In 2025, Lucid reported a net loss of $2.7 billion on revenue of $1.35 billion, while negative free cash flow reached $3.8 billion.

The broader EV market has also become increasingly difficult for manufacturers. Slower-than-expected EV adoption rates, heightened competition, and policy changes have created additional pressure on automakers. The elimination of the federal $7,500 EV tax credit has added another hurdle for companies seeking to accelerate electric vehicle sales in the United States.

Despite these challenges, Lucid has maintained that it expects to achieve positive cash flow later this decade as it works to scale production and improve operational efficiency.

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