Lucid Cuts 18% Workforce to Drive Restructuring, Plans Affordable SUV and Robotaxi Launch This Year

U.S. electric vehicle maker Lucid announced on June 22 that it will cut approximately 18% of its workforce—around 1,500 employees—as part of a restructuring plan led by new CEO Silvio Napoli. This round of layoffs comes just four months after the company reduced its staff by 12% in February of this year. Lucid has also canceled the second production shift at its Casa Grande, Arizona factory. The company stated that the latest layoffs aim to streamline its organizational structure, improve execution efficiency, and enhance long-term competitiveness. The adjustments affect full-time employees, contractors, and hourly production workers. As of the end of 2025, Lucid employed 9,000 people globally, a figure that does not yet reflect the impact of the February 2025 layoffs. Lucid expects the restructuring to be completed by the third quarter of 2025, resulting in annual cost savings of approximately $158 million and incurring about $32 million in severance expenses. Some departing executives will receive additional benefits beyond severance pay, including security support and retention of company-provided vehicles. Meanwhile, Lucid is preparing to launch its first mass-market SUV, the Lucid Cosmos, in the second half of 2025, with a starting price expected to be under $50,000. The company aims to boost sales volume through this model and gradually achieve profitability. In the autonomous driving space, Lucid has announced partnerships with Uber and Nuro to develop a premium robotaxi service, initially launching in San Francisco in the second half of 2025. Over the past two years, more than ten senior executives have left Lucid. Former CEO Peter Rawlinson resigned in February 2025, Chief Engineer Eric Bach was dismissed later in 2025 and filed a wrongful termination lawsuit (currently stayed), and executive Emad Dlala resigned in early June 2025, just months after his promotion. Lucid declined to comment on whether certain projects might be paused due to the restructuring.