Lucid cuts 18% of U.S. workforce, eliminates COO role

Lucid is cutting about 18% of its U.S. workforce, eliminating its chief operating officer role and ending a second production shift at its AMP-1 plant in Casa Grande, Arizona, in a fresh restructuring aimed at bringing the electric-vehicle maker closer to profitability.

The Newark, California-based company said the changes are designed to align production with demand, reduce inventory and improve cash flow. Lucid said the move should generate about $158 million in annualized savings, while creating about $32 million in restructuring charges tied mainly to severance, benefits and transition costs.

The company said the layoffs should be substantially complete by the end of the third quarter of 2026. It did not disclose the total number of jobs affected.

What Lucid is changing

Lucid said the workforce reduction will affect full-time employees, contractors and hourly production workers in the U.S. The company did not break out how many cuts will hit Bay Area offices versus manufacturing roles in Arizona.

The company is also removing the COO position entirely. Marc Winterhoff is leaving as part of the change, according to the reporting.

At the same time, Lucid is ending the second production shift at AMP-1. That will reduce output at the factory that builds the company’s vehicles and marks another sign of pressure on manufacturing volume.

The cuts amount to one of Lucid’s most significant cost actions this year and add to the strain already facing the company as it tries to control spending in a difficult EV market.

The chronology this year

The latest move is Lucid’s second major U.S. workforce reduction in 2026. In February, the company announced a separate 12% cut.

The restructuring also follows a leadership transition earlier in June, when Silvio Napoli took over as CEO on June 1. The removal of the COO post now further reshapes Lucid’s executive structure.

Taken together, the changes point to a company that is still trying to reset operations after a period of losses and uneven demand across the EV sector.

Why it matters

Lucid has framed the restructuring as part of a broader push toward profitability and positive cash flow. The company’s stated goal is to better match production with anticipated demand while lowering inventory.

That matters because Lucid is not only shrinking headcount. It is also reducing production capacity at a key plant, which suggests management sees cost discipline as more urgent than preserving current output levels.

The executive change carries its own signal. Eliminating the COO role and linking Winterhoff’s exit to the reorganization suggests Lucid is flattening leadership as it works through a deeper operational reset.

What to watch next

Lucid has not said exactly how many workers are being laid off, or how many of the cuts will fall in the Bay Area versus Arizona.

Further detail could emerge through state WARN notices or other labor filings that quantify the local impact. Investors will also be watching for updates on production plans after the second shift is removed.

The company’s next test is whether the projected savings are enough to offset weaker production and ongoing losses. For now, Lucid is signaling that it is willing to trade scale for efficiency as it tries to stabilize the business.