Lucid Motors has revealed plans to reduce its workforce by 12%, a move that will impact several hundred employees. Notably, hourly workers in manufacturing, logistics, and quality teams will be spared from these layoffs. The primary objective behind these layoffs is to boost operational efficiency and fine-tune resource allocation. In recognition of the impact on affected employees, the company will offer severance packages and additional support.

These layoffs coincide with Lucid Motors' intensified efforts to ramp up production and delivery of its Gravity SUV. This model has previously encountered production and quality hurdles, but output saw a significant uptick, doubling in 2024. In addition to these efforts, the company has ambitious plans for the future. It intends to introduce a mid-sized electric vehicle later this year, priced competitively at around $50,000. Furthermore, Lucid Motors is forging partnerships with Uber and Nuro to roll out autonomous taxi services in San Francisco. The company is also set to release its 2025 financial results next week.

The interim CEO has assured that these layoffs will not derail the company's strategic vision. The core focus remains steadfast on launching new models built on the mid-sized platform. Since the resignation of the former CEO in February 2025, Lucid Motors has witnessed a flurry of executive changes. Adding to the turmoil, the company's former chief engineer has initiated legal proceedings against Lucid Motors.