Lucid Motors Lays Off 12% of Workforce as It Pushes Toward Profitability

Lucid Motors electric car on a challenging desert highway representing the EV company turbulent path to profitability

Lucid Motors has laid off 12% of its workforce, according to an internal memo obtained exclusively by TechCrunch. The EV startup, which had approximately 6,800 full-time employees globally at the end of 2024, is cutting likely hundreds of jobs as it pursues profitability.

What the Memo Says

The layoff memo was sent to employees being spared by the cuts. Interim CEO Marc Winterhoff framed it as a necessary step: "We are taking these actions to improve operational effectiveness and optimize our resources as we continue on our path toward profitability."

He acknowledged the difficulty: "Saying goodbye to colleagues is never easy. 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."

Who Is Affected

The cuts target full-time employees across Lucid's operations. Notably, hourly workers on the manufacturing, logistics, and quality teams are not affected — suggesting the cuts are focused on corporate and engineering roles rather than the factory floor currently ramping up Gravity SUV production.

The Bigger Context: A Turbulent Year

Lucid Motors has been navigating significant leadership instability. Founder and CEO Peter Rawlinson abruptly resigned on February 25, 2025 — and the company has now gone almost a full year without a permanent CEO. Since then, Lucid has seen significant executive turnover, including the departure of its chief engineer, who subsequently sued the company for wrongful termination and discrimination. (Lucid has called his legal claims "absurd.")

The Upside: Production Is Growing

Despite the turbulence, there are genuine bright spots. Lucid struggled with early Gravity SUV production and quality issues, but ultimately doubled its 2024 output last year. The company is now preparing for three significant moves:

  • A mid-size EV expected to cost around $50,000, launching later this year — a much more accessible price point than the Air and Gravity.
  • A robotaxi partnership with Uber and Nuro for a service launching in the San Francisco area this year.
  • Continued ADAS and software development and geographic expansion of Gravity and Air sales.
"Importantly, today's actions do not affect our strategy. Our core priorities remain unchanged." — Lucid Motors Interim CEO Marc Winterhoff

Financial Results Due Next Week

The timing of the announcement is significant — Lucid Motors is scheduled to release its financial results for 2025 next week. The layoffs, combined with the pending financials, will give investors a clearer picture of whether the company's path to profitability is on track.

The Bottom Line

Lucid Motors just cut 12% of staff. No permanent CEO for nearly a year (Rawlinson resigned Feb 2025), exec turnover, and trying to hit profitability with a $50K mid-size EV launching later this year. The production numbers are improving and the pipeline is ambitious — but the road is turbulent.