Lucid Cuts 12% Workforce to Improve Gross Margins and Scale Gravity SUV
Lucid Group is cutting 12% of its approximately 6,800 salaried employees to streamline operations and target gross margin improvements and long-term growth. The restructuring coincides with plans to ramp Gravity SUV output and develop a more affordable mid-size EV platform after producing 18,300 vehicles in 2025.
1. Workforce Reduction Plan
Lucid is reducing 12% of its global salaried workforce, cutting around 820 roles out of approximately 6,800 full-time employees, while hourly labor at its Arizona plant remains unaffected.
2. Production Ramp and New Platform
The move aligns with ramping output of the Gravity SUV after overcoming early manufacturing issues and advancing development of an affordable mid-size EV platform. Lucid produced 18,300 vehicles in 2025, more than doubling year-over-year output.
3. Profitability Objectives
This restructuring aims to enhance gross margins and drive long-term growth by lowering operating costs. The company has also undergone executive changes over the past year, including a new interim CEO steering the drive toward profitability.