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

Lucid said Monday it will cut about 18% of its U.S. workforce, eliminate the chief operating officer role and end a second production shift at its AMP-1 factory in Arizona as part of a restructuring meant to lower costs and align output with demand.

The company said the moves should generate about $158 million in annualized savings and create about $32 million in cash restructuring charges, mainly tied to severance, employee benefits and transition costs. Lucid said the layoffs are expected to be substantially complete by the end of the third quarter of 2026.

The cuts apply across full-time employees, contractors and hourly production workers. Lucid did not give a precise headcount for the U.S. jobs affected or a site-by-site breakdown of where the reductions will land.

Restructuring details

Lucid said the plan is intended to reduce inventory, improve competitiveness and bring production closer to anticipated demand. Ending the second shift at AMP-1 is the clearest operational sign that the company is pulling back output at its Arizona manufacturing base.

The company also said it is removing the COO position entirely. Marc Winterhoff is leaving that role as a result of the change.

A Lucid spokesperson previously described the restructuring as an effort to simplify the business. The company’s latest filing and follow-up reporting indicate the cuts are broad enough to reach both salaried and hourly staff.

Why it matters

Lucid is still trying to move from high spending and uneven production toward sustained profitability. The company builds the Lucid Air sedan and Lucid Gravity SUV in Arizona, so changes at AMP-1 go directly to its ability to scale deliveries.

The savings target suggests Lucid wants immediate cost relief rather than waiting for sales to improve on their own. The restructuring charges, meanwhile, show the company will absorb near-term costs to shrink its operating base.

For workers, the announcement means another round of job losses in 2026. Lucid had already cut about 12% of its U.S. workforce earlier this year, making this the second major reduction in its domestic staff this year.

What comes next

The most important unknown is the exact headcount affected by the cuts. Lucid has not said how many people at AMP-1 are losing their jobs beyond ending the second shift, and it has not yet provided a full facility-by-facility breakdown.

Watch for any WARN notices or local layoff filings that could clarify how many employees are affected and where. Follow-up investor commentary will also matter for clues about production rates, inventory and cash burn after the restructuring takes effect.

Lucid’s latest move extends a broader retrenchment as the electric-vehicle maker tries to preserve cash and steady operations while demand remains softer than the company needs for a faster path to profitability.