Lucid (LCID) Stock Tumbles as EV Maker Slashes Workforce by 18% in Latest Restructuring

Key Highlights

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Lucid is eliminating approximately 18% of its U.S.-based workforce, affecting salaried staff, contract workers, and hourly manufacturing employees
Annual cost savings from the restructuring are projected at roughly $158 million
Chief Operating Officer Marc Winterhoff departed immediately, with the COO position permanently removed from the organizational structure
Shares of LCID declined 3.6% following the announcement and have plummeted 50% since the start of 2026
The company has withdrawn its 2026 production forecast and is shutting down the second shift at its Arizona manufacturing plant

Lucid Group revealed on Monday that it will eliminate approximately 18% of its United States workforce in what marks the company’s second major headcount reduction of 2026, as the electric vehicle manufacturer intensifies efforts to slash expenses and match production capacity with market demand.

Lucid Group, Inc., LCID

Shares of LCID fell 3.6% in response to the announcement. The stock has now lost half its value in 2026.

The workforce reduction affects multiple categories of workers including permanent employees, independent contractors, and hourly manufacturing personnel. As of the final day of 2025, Lucid employed roughly 9,000 people worldwide.

The restructuring is anticipated to generate annual savings of approximately $158 million. However, the company will absorb about $32 million in one-time cash expenses related to severance packages and employee benefit obligations.

This latest downsizing comes on the heels of a February workforce reduction that eliminated 12% of U.S. positions, a move designed to generate $500 million in savings across a three-year period.

“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a company spokesperson said.

Executive Departure and Manufacturing Shift Elimination

Marc Winterhoff, who held the Chief Operating Officer position, left the organization with immediate effect on Monday. Prior to Silvio Napoli assuming the CEO role on June 1, Winterhoff had functioned as interim chief executive. Lucid confirmed the COO role has been eliminated entirely from its leadership structure.

Additionally, the company is terminating the second production shift at its AMP-1 manufacturing complex located in Casa Grande, Arizona.

Production Forecast Withdrawn

The electric vehicle manufacturer had initially projected output of 25,000 to 27,000 vehicles for 2026, but retracted this guidance earlier in the year. Newly appointed CEO Napoli is presently conducting a comprehensive assessment of the company’s operational strategy.

According to the company, reducing excessive vehicle inventory is necessary, a strategic decision that typically indicates production slowdowns or temporary halts.

During the first quarter of 2025, vehicle deliveries remained unchanged compared to the previous year, while revenue climbed 20% during the identical timeframe.

Lucid reported a $2.7 billion deficit against $1.35 billion in revenue for the complete 2025 fiscal year. The company burned through $3.8 billion in negative free cash flow, representing an increase of approximately 31% year-over-year.

At its inaugural investor presentation in nearly half a decade held this past March, the company projected achieving positive cash flow by 2030.

The elimination of the $7,500 federal electric vehicle tax incentive under the Trump administration has created additional headwinds for EV demand throughout the sector.

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