Lucid Motors has announced a new round of layoffs affecting about 1,500 workers, representing 18% of its global workforce. The move comes just four months after a previous 12% reduction and marks the beginning of a restructuring strategy led by new CEO Silvio Napoli. The stated goal is to simplify the company, sharpen execution, and position Lucid to become more competitive in a slowing US electric vehicle market.
18% workforce cut and elimination of second production shift
In addition to the layoffs, the company has eliminated the second production shift at its Casa Grande, Arizona factory to align production plans with anticipated demand. The restructuring is expected to generate annualized savings of approximately $158 million. Lucid plans to complete the restructuring by the third quarter of 2026 and estimates severance costs of about $32 million. The cuts affect full-time employees, contractors, and hourly production workers.
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Silvio Napoli removes COO role and loses former interim CEO
Marc Winterhoff, who served as interim CEO for over a year before Napoli took over, has left the company. He was initially expected to stay on as chief operating officer, but Lucid has eliminated that position entirely. Napoli has thus consolidated operational responsibilities, marking a clear governance shift. The move comes after a turbulent period: former CEO Peter Rawlinson abruptly resigned in February 2025, chief engineer Eric Bach was let go in late 2025 and filed a wrongful termination lawsuit, and another long-time executive, Emad Dlala, resigned earlier this month just months after a promotion.
The Lucid Cosmos SUV as a lifeline for the brand
Despite the difficulties, Lucid is preparing the launch of its first mass-market vehicle, the Cosmos SUV, expected by the end of 2026 with a base price under $50,000. The model is intended to be the turning point toward profitability, but the market context remains uncertain. At the same time, Lucid is trying to become a major player in autonomous driving, partnering with Uber and Nuro for a luxury robotaxi service in San Francisco. The company has not commented on potential suspensions of other programs.
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Lucid's situation reflects the broader EV industry's struggles, with many automakers revising their plans. For those looking at deals in other tech sectors, note that LG has slashed OLED TV prices by up to $800 in June 2026, an example of how even established companies use promotions to sustain demand. For more on the automotive market, the Lucid Motors Wikipedia page offers additional context.
Source: https://techcrunch.com/2026/06/22/lucid-motors-new-ceo-cuts-18-of-staff-to-simplify-the-company
