In an effort to increase profitability in the face of intensifying competition, EV manufacturer Lucid Group said on Monday that it will lay off roughly 18% of its US personnel and that COO Marc Winterhoff has departed the firm. This was the company’s second significant managerial move in recent months.
The company’s shares were down almost 4%, as reported by Reuters.
The layoffs reflected the growing pressure on EV manufacturers like Lucid to control expenses as buyers move towards more affordable models and as profitability is impacted by growing competition from both established automakers and recent arrivals.
ALSO READ | India’s Fragmented Water Governance Raises Fiscal Risks, Warns Moody’s
The company, which employed over 9,000 people worldwide as of Dec. 31, 2025, stated that hourly factory workers, contractors, and full-time staff will all be impacted by the reduction. Additionally, it eliminated the second shift at its main EV production plant, the AMP-1 factory in Arizona.
In an effort to save money in a sector known for high spending, Lucid laid off 12% of its American workers in February 2026.
The EV manufacturer has been dealing with operational difficulties, such as a supplier-related problem that caused the delivery of its Gravity SUV to be delayed in February. The corporation halted its 2026 output forecast last month to conduct a business assessment.
While a robotaxi deployment through collaborations with Uber, the manufacturer has been relying on its Gravity SUV and future mid-size vehicle platform to drive growth.
According to Lucid, the restructuring will save about $158 million in yearly costs while costing roughly $32 million in severance and other employee-related expenses.
After Peter Rawlinson resigned from the position in February 2025, Winterhoff took over as Lucid’s temporary CEO for more than a year. Silvio Napoli, a former head of Schindler, was named CEO of the EV manufacturer in April.
ALSO READ | EVs Kickstart FY27 On Top Gear As April Registrations Jump Over 40%
The manufacturer of all-electric cars said that its strategy will result in yearly cost savings of about $158 million, as reported by CNBC.
Due to slower-than-expected EV adoption and shifting restrictions under the Trump administration, such as the removal of a $7,500 federal incentive for buying an EV, Lucid and its electric car competitors are confronting a more difficult market than they have in recent years.
Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
