Lucid cuts 12% of its workforce
With its premium models, the Air saloon and Gravity SUV, the California-based manufacturer Lucid has launched two vehicles to date and is incurring significant losses in the process. In the third quarter of 2025 alone, the company reported a loss of $978.4 million, while its fourth-quarter 2025 results will not be released until 24 February 2026. Since its founding and until the end of September 2025, Lucid has accumulated total losses of $14.8 billion.
The company’s situation remains challenging, despite its largest shareholder, the Saudi sovereign wealth fund PIF (Public Investment Fund), increasing the delayed-draw credit facility from $750 million to approximately $2 billion. While liquidity has been temporarily secured through such measures, the operational business must still be streamlined to achieve cost efficiency and, ultimately, profitability.
“We are streamlining our organisation so we can operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth,” interim CEO Marc Winterhoff wrote in an internal email to staff, as quoted by several US media outlets.
The move is likely to affect hundreds of employees. At the end of 2024, Lucid Group reported 6,800 employees worldwide. If that figure has remained stable, a 12 per cent reduction would translate into more than 800 jobs. However, Lucid told media outlets that it will spare production staff from the cuts. The company will instead focus the reductions primarily on office-based roles.
“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff wrote in an internal email, according to TechCrunch. “We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.”
In 2025, Lucid increased its deliveries by 55 per cent to nearly 16,000 vehicles, partly due to it being the first full delivery year for its second model, the Lucid Gravity. However, production volumes remain far too low to operate profitably. This is expected to change with a new mid-range SUV, priced at around 48,000 to 50,000 US dollars.
Interim CEO Winterhoff stated in his email to staff: “Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies.”
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