• Lucid Group (LCID) cuts approximately 400 jobs (6% of its workforce) as part of a restructuring plan to reduce costs, following prior layoffs of 1,300 employees in early 2024.
  • The EV manufacturer faces challenges including production misses, losses per vehicle, and a stock decline of over 35% year-to-date, despite strong backing from Saudi Arabia's Public Investment Fund.
  • The move aims to preserve cash for upcoming vehicle launches like the Gravity SUV in late 2024 and mid-size Earth in 2026, with cost savings expected to bolster operations amid softening demand and high interest rates.

Lucid Group, the luxury electric vehicle maker, is trimming its workforce again in a bid to navigate a turbulent market. According to people familiar with the matter, the company announced a restructuring plan that will eliminate around 400 positions by the end of the third quarter, representing about 6% of its roughly 6,500 employees. This follows a larger round of layoffs earlier in 2024, when Lucid cut 1,300 jobs, or 18% of its staff, as part of efforts to streamline operations.

In a memo to employees, CEO Peter Rawlinson outlined the latest cuts, sparing manufacturing and logistics roles while targeting mid-level and top managers most heavily. The move comes as Lucid grapples with financial pressures: the company produced 8,428 vehicles in 2023, missing its targets, and reported losses of approximately $377,000 per vehicle in the fourth quarter, with figures reaching up to $430,000 in the third quarter. Despite a recent infusion of over $1 billion from Saudi Arabia's Public Investment Fund, its majority shareholder, Lucid's stock has fallen more than 35% year-to-date, reflecting investor concerns amid EV price wars and high interest rates that are dampening new car demand.

Efforts to restructure its debt have hit a snag, with the company focusing on cost reductions in parts and shipping, and delaying the expansion of its Arizona factory for Gravity production. Without these measures, analysts suggest Lucid would face heightened cash burn risks. The layoffs are expected to incur severance costs of $21 to $25 million, mostly in the second quarter of 2024, according to SEC filings. A spokesperson for Lucid declined to comment on the specifics of the job cuts when reached, but emphasized the company's commitment to long-term growth and innovation.

This isn't the only shake-up at Lucid recently. Separate from the workforce reduction, the company has overhauled its software leadership, firing "more than a handful" of employees, though exact numbers remain undisclosed. This follows the departure of chief engineer Eric Bach in November 2024, part of a broader talent exodus. In November 2025, Lucid announced organizational changes aimed at accelerating growth and expansion, signaling ongoing adjustments to its strategy.

Industry watchers note that Lucid's struggles mirror broader trends in the EV sector, where rivals like Rivian (RIVN), Ford (F), and GM (GM) have also implemented job cuts and project delays. High interest rates have inflated auto loans, fueling a preference for hybrids and intensifying price competition. Yet, Lucid maintains a guidance of producing 9,000 vehicles in 2024, a modest 7% growth from last year, with cash reserves bolstered by the PIF investment and a prior $1.5 billion capital raise.

Looking ahead, the short-term focus is on positioning for the Gravity SUV launch in late 2024 and the mid-size Earth vehicle in 2026. Saudi orders are expected to ramp up to 4,000-7,000 vehicles per year by 2025, providing a potential boost. Experts describe Lucid's future as "bright" due to its innovation and strong backing, but caution that market cooling could temper near-term gains. As one analyst put it, "It's a rocky startup phase, but with the right moves, they can weather this storm."

Correction: An earlier version of this article misstated the timing of prior layoffs; they were completed by Q2 2024, not Q3.