Lucid Motors is reducing its workforce by 18 percent, impacting around 1,500 employees, only four months after implementing a prior 12 percent staff reduction. The company announced on Monday that it has also removed the second shift at its electric vehicle manufacturing plant in Casa Grande, Arizona.

The reductions form part of efforts led by Lucid's new CEO, Silvio Napoli, aimed at streamlining operations, improving focus on execution, and enhancing long-term competitiveness, according to a company statement. These changes occur amid a slowdown in the U.S. electric vehicle sector, where several major manufacturers have scaled back their electric vehicle offerings.

Marc Winterhoff, who acted as interim CEO for over a year before Napoli assumed the role, has departed the company. Previously, Winterhoff, Napoli, and Lucid had indicated that Winterhoff would transition to chief operating officer. A regulatory filing reveals that Lucid has now eliminated the chief operating officer position altogether.

This latest round of reductions takes place as Lucid advances plans to launch its first mass-market model later this year, the Lucid Cosmos SUV. Priced starting below $50,000, this more affordable electric vehicle is intended to guide the company toward profitability.

Lucid is also pursuing opportunities in autonomous vehicles through partnerships with Uber and Nuro to develop a premium robotaxi service planned for launch later this year in San Francisco. The company did not provide details on whether any initiatives face potential cancellation.

The Saudi Arabia-backed public company has experienced turnover among more than a dozen senior executives in the past two years. Former CEO Peter Rawlinson stepped down suddenly in February 2025, Chief Engineer Eric Bach departed in late 2025 and pursued legal action that remains in arbitration, and Emad Dlala resigned earlier this month shortly after a promotion.

The current reductions affect full-time staff, contractors, and hourly production employees. At the end of 2025, prior to the February cuts, Lucid reported a global workforce of 9,000.

Lucid stated that the layoffs will help align manufacturing with projected demand and deliver annual cost savings of approximately $158 million. The restructuring is expected to conclude by the third quarter of this year.

Lucid will provide around $32 million in severance payments. Winterhoff will receive severance along with certain security provisions and retain use of his company vehicle, per the regulatory filing.