TLDR
- Lucid is cutting ~18% of its U.S. workforce, covering full-time employees, contractors, and hourly production workers
- The cuts are expected to save approximately $158 million annually
- COO Marc Winterhoff has left the company effective immediately, and the COO role has been eliminated
- LCID stock fell 3.6% on the news and is down 50% in 2026
- Lucid has suspended its 2026 production guidance and is eliminating the second production shift at its Arizona factory
Lucid Group announced Monday it is laying off roughly 18% of its U.S. workforce, the second round of cuts in 2026, as the EV maker pushes to reduce costs and align production with demand.
LCID stock dropped 3.6% on the news. The stock is now down 50% year-to-date.
The cuts span full-time employees, contractors, and hourly production workers in manufacturing. Lucid had approximately 9,000 global employees as of December 31, 2025.
The company expects the move to deliver annualized cost savings of around $158 million. It will also incur roughly $32 million in cash charges tied to severance and employee benefits.
This follows a February layoff that cut 12% of the U.S. workforce, which was aimed at saving $500 million over three years.
“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a company spokesperson said.
COO Out, Second Shift Axed
Chief Operating Officer Marc Winterhoff departed the company effective immediately on Monday. Winterhoff had served as interim CEO before Silvio Napoli took over the role on June 1. Lucid said the COO position has been permanently eliminated.
Lucid is also cutting the second shift at its AMP-1 manufacturing facility in Casa Grande, Arizona.
Production Guidance Suspended
Lucid had previously guided for 25,000 to 27,000 vehicles in 2026, but suspended that outlook earlier this year. New CEO Napoli is currently reviewing the company’s business operations.
The company said it needs to reduce elevated vehicle inventory, a move that typically signals slowing or pausing production.
In Q1 2025, deliveries were flat year-over-year, though revenue was up 20% for the same period.
Lucid posted a $2.7 billion loss on $1.35 billion in revenue for full-year 2025. Free cash flow was negative $3.8 billion, up roughly 31% from the year prior.
The company held its first investor day in nearly five years in March, where it stated it expects to reach cash-flow positive by the end of the decade.
The $7,500 federal EV tax credit was eliminated under the Trump administration, adding further pressure on EV demand across the industry.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
