Lucid Cuts 18% of Workforce as New CEO Restructures Ahead of Cosmos SUV Launch
Lucid Motors announced Monday that it will lay off approximately 18% of its workforce — roughly 1,500 employees — as new CEO Silvio Napoli moves aggressively to restructure the troubled electric vehicle startup. The cuts come just four months after a previous round eliminated 12% of staff, underscoring the depth of the financial and operational reset underway at one of America’s most closely watched EV manufacturers.
The restructuring will touch every corner of the business. Lucid confirmed it is eliminating the second production shift at its Casa Grande, Arizona factory and reducing headcount across full-time employees, contractors, and hourly production workers. The company expects the moves to save roughly $158 million annually, with the full reorganization slated to complete by the third quarter of this year. Severance costs are projected at approximately $32 million.
Napoli, who took the CEO seat earlier this year, framed the layoffs as a necessary step toward a leaner, more execution-focused organization. The timing is particularly delicate: Lucid is preparing to launch the Cosmos, its first mass-market SUV, later this year. With a starting price expected below $50,000, the Cosmos represents Lucid’s best — and perhaps last — shot at breaking out of the low-volume luxury niche and building the sales volume needed to approach profitability.
The company is also betting on autonomous driving as a future revenue stream. Lucid previously announced partnerships with Uber and Nuro to develop a luxury robotaxi service, with plans to launch in San Francisco later this year. When asked whether any of those projects would be paused or scaled back as part of the restructuring, Lucid declined to comment.
The layoffs cap a period of extraordinary leadership turbulence for the company. More than ten senior executives have departed over the past two years. Longtime CEO Peter Rawlinson resigned abruptly in February 2025. Chief Engineer Eric Bach was dismissed later that year and quickly filed a wrongful termination lawsuit, though proceedings were paused before arbitration concluded. Long-serving executive Emad Dlala also resigned earlier this month, just months after being elevated to a senior role.
At the end of 2025, Lucid employed approximately 9,000 people globally — before the February layoffs took effect. With the latest 18% reduction layered on top of the earlier 12% cut, the company’s workforce has contracted sharply in under half a year.
The road ahead is narrow. Lucid must simultaneously execute a complex product launch, contain costs, stabilize its leadership bench, and convince a skeptical market that it can graduate from a boutique luxury EV maker into a viable, volume-scale automaker. Napoli’s restructuring may be brutal, but for a company that has burned through cash and executive talent at an alarming rate, the alternative may be worse.
