Lucid cuts 18% of US workforce, COO departs in restructuring

Lucid Group, an electric vehicle manufacturer, announced a significant restructuring plan that includes cutting approximately 18% of its U.S. workforce. This move is aimed at accelerating the company's path toward profitability and positive cash flow generation by streamlining its operations and optimizing expenses.

As part of the realignment, Chief Operating Officer Marc Winterhoff has departed the company, and his position has been eliminated. The company is also scrapping the second production shift at its primary EV production facility, the AMP-1 factory, to align production levels with current demand signals and manage its cash burn rate. These operational changes are expected to incur about $32 million in cash charges, primarily for severance and employee benefits, while generating an estimated $158 million in annualized cost savings.

Lucid is also considering a more substantial reduction of up to 40% in its European operations, which are reportedly running at a steep loss. This latest round of U.S. layoffs marks the fourth formal workforce cut at Lucid since 2023 and the second this year, following a 12% reduction in February. The company had previously cut roughly 1,300 jobs, or 18%, in March 2023. Despite these cuts, Lucid has indicated plans to add manufacturing workers in Saudi Arabia as it expands its plant there, suggesting a strategic shift in focus rather than a complete scaling back of operations.