Lucid Cuts 18% of U.S. Workforce for $158M Savings, Eliminates Second Shift
LCID•Lucid is cutting its US workforce by 18%, targeting $158 million in annual savings and $32 million in severance charges while eliminating the COO role. It will cut the second production shift at its Arizona facility to align output with demand after a $2.7 billion net loss in 2025.
1. Workforce Reduction and Cost Savings
Lucid is reducing its US headcount by about 18%, encompassing full-time staff, contractors and hourly manufacturing workers. The restructuring aims to generate $158 million in annualized cost savings while incurring approximately $32 million in one-time severance and transition expenses.
2. COO Role Eliminated
Chief Operating Officer Marc Winterhoff has left the company effective immediately and the COO position has been eliminated. The change follows the appointment of Silvio Napoli as permanent CEO on June 1, consolidating operational leadership under the new executive team.
3. Production Shift and Facility Adjustments
The company will eliminate the second production shift at its AMP-1 facility in Casa Grande, Arizona, to better align output with current demand. This move reflects a broader effort to reduce inventory build and improve manufacturing efficiency.
4. Financial Impact and Outlook
Lucid reported a $2.7 billion net loss in 2025 and negative free cash flow of $3.8 billion, highlighting ongoing financial challenges. Shares fell more than 3% on the announcement as investors weighed the cost reductions against softer market conditions.
