Lucid Motors cuts 18% of staff, eliminates COO role

Key Takeaways

• Lucid Motors is cutting 18% of its workforce, around 1,500 employees, just four months after a 12% reduction
• The company eliminated its COO position and second production shift at its Arizona factory
• Lucid expects $158 million in annual savings as it prepares to launch the sub-$50,000 Cosmos SUV

Lucid Motors is laying off 18% of its workforce, roughly 1,500 employees, and eliminating the second production shift at its Casa Grande, Arizona factory. The cuts come just four months after the Saudi-backed EV maker slashed 12% of its staff, meaning nearly a third of Lucid's workforce has been let go since February.

New CEO Silvio Napoli framed the restructuring as necessary to "simplify the company, sharpen execution, and position Lucid to become more competitive over time." The company expects annualized savings of $158 million and will pay approximately $32 million in severance. The restructuring should wrap up by Q3 2026.

Why is Lucid cutting jobs now?

The EV market in the United States has cooled significantly. Major automakers are pulling electric models from their product plans, and consumer demand has softened. Lucid, which builds luxury EVs starting well above $70,000 for the Air sedan, sits in a particularly tough spot. High prices limit the buyer pool. Production volumes remain modest. Cash continues to burn.

Lucid reported having 9,000 employees globally at the end of 2025. After the February cuts and this latest round, that number drops to around 6,300. The company stated the layoffs will help align "production plans with anticipated demand," a polite way of saying they were building more cars than people wanted to buy.

Executive exodus continues

Napoli took the CEO job from interim chief Marc Winterhoff, who had held the position for more than a year. Both executives and the company had publicly stated Winterhoff would stay on as chief operating officer. That did not happen. In a regulatory filing, Lucid disclosed it eliminated the COO position entirely, and Winterhoff has left the company.

Winterhoff's departure adds to a striking pattern. More than a dozen top executives have left Lucid over the past two years. Longtime CEO Peter Rawlinson resigned abruptly in February 2025. Chief Engineer Eric Bach was let go in late 2025 and filed a wrongful termination lawsuit, now paused pending arbitration. Emad Dlala, another veteran employee, resigned earlier this month, just months after a promotion to a senior role.

The filing notes Winterhoff will receive severance, "certain security support," and gets to keep his company vehicle. Standard golden parachute provisions, though the security detail is an unusual mention for an EV startup.

Can the Cosmos SUV turn things around?

Lucid is pinning its hopes on the Cosmos, its first mass-market vehicle, scheduled for release later this year. The SUV is supposed to start under $50,000, a dramatic departure from the Air sedan's six-figure territory. The company believes the Cosmos will put it on a path to profitability.

That is a steep bet. Building and selling a sub-$50,000 EV profitably is something even Tesla struggled with for years. Lucid has never demonstrated it can manufacture vehicles at scale, let alone at a price point that requires high volume to work financially.

The company is also pushing into autonomous vehicles, partnering with Uber and Nuro on a luxury robotaxi service planned for San Francisco later this year. When asked whether any programs are being mothballed, Lucid declined to comment. The non-answer suggests nothing is officially dead, but priorities are clearly shifting.

Who is Silvio Napoli?

Napoli comes from Schindler Group, the Swiss elevator and escalator company, where he served as chairman. He is not an automotive executive. His background is industrial operations and manufacturing efficiency. The choice signals the board may be prioritizing cost discipline and operational rigor over traditional auto industry experience.

Whether that is the right call depends on your view of Lucid's problems. If the issue is sloppy execution and bloated costs, Napoli's skillset fits. If the issue is product-market fit or manufacturing know-how specific to EVs, hiring an elevator executive looks like a gamble.

The Saudi factor

Lucid is majority-owned by Saudi Arabia's Public Investment Fund. That backing has kept the company alive through years of losses, but it also creates pressure to eventually deliver returns. The PIF has been patient so far. It is unclear how long that patience extends if the Cosmos fails to gain traction.

Lucid went public via SPAC in 2021 at a valuation exceeding $60 billion. The stock has fallen dramatically since then, reflecting both the company's struggles and the broader EV market correction. Investors who bought at the peak have lost most of their money.

Frequently Asked Questions

How many employees has Lucid Motors laid off in 2026?

Lucid has cut approximately 2,600 employees in 2026, combining the 12% reduction in February with the 18% cut announced in June. The company had 9,000 employees globally at the end of 2025.

When will the Lucid Cosmos SUV be released?

Lucid plans to release the Cosmos SUV later in 2026. The company has not provided a specific date, but it is expected before year-end.

How much will the Lucid Cosmos cost?

Lucid says the Cosmos will start under $50,000, making it significantly more affordable than the Air sedan, which starts above $70,000.

Who owns Lucid Motors?

Lucid Motors is majority-owned by Saudi Arabia's Public Investment Fund (PIF). The company is publicly traded on the NASDAQ.

Why did Lucid's CEO Peter Rawlinson leave?

Peter Rawlinson abruptly resigned in February 2025. The company has not publicly disclosed the specific reasons for his departure.

Source: TechCrunch / Sean O'Kane