Luxury electric vehicle manufacturer Lucid Group has announced one of its biggest restructuring moves to date, confirming Lucid layoffs and cutting 18% of staff across its U.S. operations while permanently eliminating the position of Chief Operating Officer (COO). The decision affects around 1,500 employees, including full-time staff, contractors, and hourly production workers, as the company responds to slowing demand in the premium electric vehicle market.
The restructuring comes just three weeks after Silvio Napoli officially became Lucid’s CEO on June 1, 2026, signaling an aggressive strategy to streamline operations and move the Saudi-backed EV maker toward long-term profitability.
Lucid layoffs cuts 18% staff: What the restructuring includes
According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), the restructuring extends beyond workforce reductions. Lucid will also eliminate the second production shift at its AMP-1 manufacturing plant in Casa Grande, Arizona, aligning production capacity with current customer demand.
As part of the organizational overhaul, Marc Winterhoff has exited the company after the COO position was permanently removed. Winterhoff had served as Lucid’s interim CEO following former CEO Peter Rawlinson’s departure before returning to the COO role when Napoli was appointed.
Although leaving the company, Winterhoff will receive a severance package, continued security support, and retain his company vehicle under the terms outlined in the SEC filing.
Why Lucid is reducing its workforce
The company said Lucid’s layoff cuts of 18% of staff are aimed at simplifying operations, lowering costs, reducing excess inventory, and matching production with weakening customer demand.
A company spokesperson described the layoffs as difficult but necessary, stating that the restructuring will improve execution and strengthen Lucid’s long-term competitiveness as the luxury EV market faces slower-than-expected growth.
Lucid estimates the restructuring will generate approximately $158 million in annual cost savings. However, the company expects to incur nearly $32 million in severance and employee transition expenses, with the entire restructuring program scheduled for completion by the third quarter of 2026.
Second major layoff round in 2026
This is the second significant workforce reduction announced by Lucid this year. In February 2026, the company reduced approximately 12% of its U.S. workforce. Combined with the latest announcement, Lucid has eliminated nearly 30% of its workforce in less than six months, highlighting the financial pressures facing premium EV manufacturers.
The company has also suspended its full-year 2026 production guidance while CEO Silvio Napoli conducts a comprehensive review of operations to improve efficiency and profitability.
Leadership transition marks a new chapter
Lucid has experienced major executive changes over the past year. Former CEO Peter Rawlinson resigned unexpectedly in February 2025, after which Marc Winterhoff served as interim CEO.
On June 1, 2026, Silvio Napoli, the former head of The Schindler Group, officially assumed the role of permanent CEO. Since taking charge, Napoli has focused on restructuring the business and reviewing production strategies as the company adapts to changing market conditions.
Challenges and future growth plans
Despite the latest Lucid layoffs cuts 18% of staff, the company continues to invest in future products and technology. Lucid is preparing to launch a more affordable electric SUV priced below $50,000, targeting mainstream buyers and competing with popular models such as the Tesla Model Y and Rivian R2.
The automaker is also advancing autonomous mobility initiatives through partnerships with Uber and Nuro to develop robotaxi technology.
Earlier this year, Lucid faced supply chain disruptions that affected deliveries of its Gravity SUV, while some customers reported software-related issues. Although many of these challenges have since been addressed, the company continues to receive industry recognition for its engineering expertise, particularly the highly efficient Lucid Air electric sedan.
Outlook
The latest restructuring reflects the growing pressure on luxury EV manufacturers to balance production with slowing consumer demand and rising operational costs. While Lucid’s layoff cuts of 18% of staff, representing a difficult step for employees, the company believes the move will create a leaner organization capable of achieving sustainable growth and long-term profitability under its new leadership.
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