Embattled California-based electric car manufacturer Lucid Motors has confirmed that it will lay off 12 per cent of its workforce in a move intended to “streamline” the company and boost profitability.
First reported by TechCrunch late last week, which obtained an internal Lucid memo, the job cuts were later confirmed by other outlets including Reuters. The cuts are part of an effort to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability.”
“Saying goodbye to colleagues is never easy,” said Marc Winterhoff, Lucid Motors interim CEO, according to the memo.
“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.”
It is unclear exactly how many employees will be losing their jobs, but it is reportedly 12 per cent of its US-based staff.
As of the end of 2024, according to an early 2025 filing with the SEC, Lucid Motor employed 6,800 full-time employees globally, which included the company’s headquarters in Newark, California, a satellite location in Michigan, and EV manufacturing facilities in Arizona, as well as sites in Saudi Arabia and retail stores throughout the United States and Canada, Europe, Saudi Arabia, and United Arab Emirates.
If these figures are still representative, that could see as many as 800 employees laid off. The job cuts will reportedly not affect hourly workers on Lucid Motors’ manufacturing, logistics, and quality teams.
Founded in 2016 “to build the world’s best cars and accelerate the shift to clean energy”, Lucid Motors has launched two premium electric vehicles (EVs), the flagship Lucid Air saloon and the follow-up Gravity SUV.
But Lucid has struggled to stay above water as demand for high-priced luxury EVs has softened and its total losses have continued to mount. According to its most recent financial results published in November 2025 (its Q4 and full-year 2025 results are due any day), its accumulated deficit from launch to the end of September 2025 amounted to just shy of US$14.8 billion.
Lucid did finish 2025 on a high note, however, producing 8,412 vehicles in the fourth quarter, up 116 per cent on the previous quarter, and delivering 5,345 vehicles, up 31 per cent on the previous quarter.
For the full year 2025, Lucid produced 18,378 vehicles, up 104% year-on-year, and delivered 15,841 vehicles, up 55%.
Sales in 2025 were bolstered as Lucid ramped up production and delivery of the Gravity SUV, and the company is also pinning its future hopes on the pending launch of a mid-size EV sometime this year that is expected to cost around $US50,000.
That would represent a significant step down in price for Lucid. The Gravity Touring SUV starts at US$79,990, while the entry-level Lucid Air begins at US$70,900, and a fully optioned version can exceed US$249,000.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.