As with many other EV-only automakers, Lucid Motors is forced to face the new realities of the U.S. electric car market in the wake of last year's termination of the $7,500 EV federal tax credit and the rollback of stricter fuel efficiency targets by the Trump administration.
For the California-based EV startup, the drop in electric car demand has led to a 12% reduction of its global salaried workforce, according to TechCrunch, which got hold of an internal company memo sent to employees.
Hourly Workers at Arizona Plant Keep Their Jobs
Lucid
In the February 20 email, Lucid interim CEO Marc Winterhoff said the "difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability." Lucid has yet to turn a profit as it continues to burn cash at an alarming rate.
The company has been burning roughly $310 million per month, with quarterly losses reaching around $1 billion in some quarters; for example, Lucid posted a $1.03 billion net loss in Q3 2025.
The memo did not specify how many employees were being let go but noted that hourly workers across the manufacturing, logistics and quality teams at its Casa Grande, Arizona assembly plant were not affected by the cuts.
Lucid Motors reported having 6,800 full-time employees worldwide at the end of 2024, which suggests that the layoffs are in the hundreds, if not closer to 1,000 assuming staff had grown since late 2024. The magnitude of the layoffs will become clear when Lucid files its annual 10-K filing with the SEC.
Former Nikola Employees Reportedly Affected
Nikola
Winterhoff said the employees impacted by the layoffs would be provided "severance, bonus, continued health benefits, and transition support to help them through this period."
According to EV, the job cuts affected professionals in battery testing and R&D, EV test and validation, continuous improvement and reliability engineering, simulation and thermal engineering, vehicle logistics, and corporate innovation. In addition, departments like manufacturing engineering, functional safety and autonomous driving, quality engineering, and talent acquisition were reportedly affected.
The same source claims that some of the affected workers are former Nikola engineers who joined Lucid less than a year ago after the EV maker acquired select Nikola facilities and assets in Arizona; the electric truck manufacturer filed for Chapter 11 bankruptcy in February 2025.
Lucid Maintains Its Strategy Despite Job Cuts
News of the job cuts comes as Lucid is in the middle of ramping up production and deliveries of the Gravity large SUV and is also gearing up to launch a more affordable mid-size EV later this year. The vehicle will start around $50,000 and will likely be a crossover, judging by the teaser image Lucid released last year (see above photo).
The Saudi-backed EV maker struggled with Gravity production and quality issues during the first few months after the electric SUV entered production in late 2024 but managed to ramp production last year, ending it with 15,841 units delivered, a double output compared to 2024.
Lucid's interim CEO pledged that the layoffs will not affect the company's strategy, which includes the start of production of the new midsize model this year, increasing sales for the Air sedan and Gravity SUV across the world, continued ADAS and software development, and an expansion into the robotaxi market.
The company is working with Uber and autonomous vehicle company Nuro to launch a robotaxi service in the San Francisco Bay Area late this year.
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