Lucid Motors announced a 12% reduction in its U.S. workforce on Friday, marking another significant downsizing for the luxury electric vehicle maker. The Newark-based company, which has struggled to achieve profitability in the notoriously difficult EV market, confirmed the cuts to SFGATE while emphasizing that its hourly manufacturing workforce in Casa Grande, Arizona, would be spared.

This latest round of layoffs follows previous reductions of 1,300 workers in 2023 and 400 in 2024, leaving the company with approximately 6,800 total employees as of late 2024. Interim CEO Marc Winterhoff called the decision "difficult but necessary" in a memo published by Business Insider, stating the cuts would help Lucid "operate with greater efficiency" and meet commitments to improve gross margins. The company has received billions in investment from Saudi Arabia's sovereign wealth fund.

Lucid's financial challenges have been stark. Once valued at over $89 billion during the 2021 EV enthusiasm, the company's stock has plummeted approximately 96% from its peak, with current market capitalization around $3.1 billion. Despite building 18,378 vehicles in 2025—more than double the previous year's production—Lucid reported a net loss exceeding $1.8 billion through the first nine months of 2025. The layoffs come days before the company's February 24 financial report, where it will disclose 2025 margins and outline its path forward in an increasingly competitive EV landscape.