Lucid Group is cutting 1,620 American jobs — roughly 18% of its U.S. workforce — as the struggling electric vehicle maker scrambles to match production with lackluster consumer demand. The Silicon Valley automaker announced Monday it expects to save $158 million annually through the layoffs, which hit factory workers, salaried employees, and contractors alike.
The cuts come just four months after Lucid eliminated 12% of its U.S. staff in February. For workers who survived that round, Monday’s news means the ax has fallen twice in half a year at a company that promised to challenge Tesla’s dominance.
COO Position Eliminated as Leadership Reshuffles
Chief Operating Officer Marc Winterhoff departed immediately, with Lucid eliminating the COO role entirely. Winterhoff had served as interim CEO until Silvio Napoli took the top job on June 1 — less than three weeks ago. The rapid leadership changes signal deeper turmoil inside a company that went public through a SPAC merger in 2021 with a $24 billion valuation.
Lucid had approximately 9,000 employees worldwide as of December 31. Monday’s reductions focus on U.S. operations, where the company manufactures its Air luxury sedan at a facility in Casa Grande, Arizona.
Production Scaled Back as EV Market Cools
“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a Lucid spokesperson said. The statement acknowledges what dealers and industry analysts have been saying for months: American buyers aren’t rushing to snap up expensive electric vehicles, especially with interest rates making luxury purchases harder to justify.
The company expects to pay approximately $32 million in severance costs related to the layoffs, according to its SEC filing. That’s money flowing out the door even as Lucid tries to conserve cash and reach profitability — a goal that keeps receding into the future.
For the 1,620 workers losing their jobs, the timing couldn’t be worse. The broader auto industry faces headwinds from high interest rates, and electric vehicle startups have become particularly risky employers as Tesla’s price cuts squeeze competitors. Workers who bet their livelihoods on Lucid’s promise to become America’s next great automaker are now looking at severance packages and a tough job market.
Key Points
- Lucid is cutting 18% of its U.S. workforce (1,620 jobs) to save $158 million annually
- COO Marc Winterhoff left immediately as the company eliminated the position entirely
- This marks Lucid’s second major layoff in four months, following a 12% reduction in February
https://www.cnbc.com/2026/06/22/lucid-layoffs-evs.html – June 22, 2026
