Lucid Group Inc (NASDAQ:LCID) is reducing its United States workforce by approximately 18% as part of a broader cost-cutting initiative aimed at improving efficiency and aligning production with demand, the electric vehicle maker announced on Monday.
The company said the restructuring is expected to generate about $158 million in annualized cost savings. The reductions include full-time employees, contractors, and hourly manufacturing staff, according to a filing with the US Securities and Exchange Commission.
As part of the changes, Lucid also confirmed that its chief operating officer (COO), Marc Winterhoff, is leaving the company effective immediately. The COO role has been eliminated. Winterhoff previously served as interim CEO until Silvio Napoli assumed the position on June 1.
The automaker also said it will eliminate the second production shift at its AMP-1 facility in Arizona, a move that is expected to further align output with current demand.
The company expects to incur roughly $32 million in cash charges related to severance and employee transition costs.
Lucid said the workforce reductions reflect efforts to adjust production levels, reduce inventory, and respond to softer market conditions.
“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a Lucid spokesperson said in a statement. “They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time.”
Lucid has continued to scale its deliveries while narrowing losses, but continues to face financial challenges. The company reported a net loss of $2.7 billion on $1.35 billion in revenue in 2025, alongside negative free cash flow of $3.8 billion.
Shares of Lucid traded down more than 3% at about $5 on the news.