Lucid Motors slashes 1,500 jobs in second major restructuring of the year
The Saudi-backed manufacturer is eliminating its second factory shift and the chief operating officer role, projecting $158 million in annual savings following $32 million in transition costs.
Lucid Motors has announced a workforce reduction of approximately 1,500 employees, representing 18 percent of its total staff. This marks the second significant layoff event for the electric vehicle manufacturer in 2024, following a 12 percent cut in February. The company stated in a filing with the Securities and Exchange Commission that the restructuring is designed to advance its path toward profitability and positive cash flow generation.
The measures include streamlining the organisational structure, optimising operating expenses, and aligning production plans with anticipated demand. CEO Silvio Napoli described the initiative as a plan to simplify the company. These operational changes coincide with the elimination of the second shift at the firm’s Casa Grande, Arizona factory.
Financially, Lucid projects that the combined measures will save the company $158 million annually. This savings figure comes after the company incurs $32 million in severance, employee benefits, and transition costs. The reduction follows a period of executive instability, with original CEO Peter Rawlinson stepping down abruptly in February and acting CEO Marc Winterhoff serving until April.
Winterhoff, who also held the role of chief operating officer, is among those receiving severance. With his departure, Lucid is abolishing the COO position entirely. Silvio Napoli was appointed as the new chief executive in April, succeeding Winterhoff during a period of leadership transition.
The workforce reduction occurs shortly after Lucid showcased a new midsize electric vehicle platform in June. The company continues to sell its Gravity SUV and Air sedan while planning to introduce smaller, more affordable models in the coming years. Lucid intends to achieve higher sales volumes through these new vehicles as part of its strategy to reach profitability.
