Image: Lucid MotorsJust three weeks after Silvio Napoli took over as the new CEO of Lucid, the incoming chief has made his first major move – and it is a painful one for the workforce. The electric vehicle manufacturer, which has accumulated total losses of $16.4 billion US dollars since its founding, is once again downsizing its staff on a large scale.This time, 18 per cent of the workforce will be let go, following the decision by former interim CEO Marc Winterhoff in February to cut 12 per cent of jobs. It remains unclear how many employees have been affected by both rounds of layoffs. The last publicly stated headcount was around 9,000 as of 31 December 2025.As part of the latest measures, the company has also discontinued the second shift at its AMP-1 plant in Casa Grande, in the US state of Arizona. Lucid has evidently had to acknowledge that production must be adjusted to reduce inventory levels. The fact that this was achieved by eliminating an entire shift, rather than slowing production or introducing a temporary halt, underscores how far recent projections have deviated from reality.The reasoning behind the layoffs, both now and previously, remains the same: Lucid must reduce costs and improve profitability. This is sorely needed, as in the first quarter of 2026, the EV manufacturer posted a net loss of $1.13 billion US dollars—despite generating only $282.5 million US dollars in revenue. In other words, losses were four times higher than turnover.The latest cost-cutting programme introduced by new CEO Silvio Napoli is expected to deliver annual savings of approximately $158 million US dollars for the company. Lucid estimates that severance payments, social benefits, and employee transition costs will amount to around $32 million US dollars, as stated in a mandatory filing with the US Securities and Exchange Commission (SEC).Presumably to signal a clear fresh start, Lucid and Marc Winterhoff have parted ways with immediate effect. Winterhoff had taken over as interim CEO following the departure of former chief Peter Rawlinson in February 2025. He was originally set to remain with the company after Napoli’s appointment on 1 June, assuming the role of Chief Operating Officer (COO). However, not only is Winterhoff now leaving, but the COO position itself has been eliminated entirely. A curious detail: in addition to a severance package, Winterhoff negotiated to keep his company car.The future success of Lucid will now depend not only on its two existing premium models – the Lucid Air (electric limousine) and Lucid Gravity (electric SUV)—but also on its planned mid-range model offensive. This includes two SUVs, the Lucid Cosmos and Lucid Earth, a third as-yet-unnamed mid-range vehicle, and a dedicated robotaxi. Additionally, Lucid is working on a planned robotaxi service in collaboration with Nuro and Uber, which aims to deploy 35,000 vehicles—initially retrofitted Lucid Gravity units and later a purpose-built robotaxi.sec.gov, cnbc.com
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