Luxury electric vehicle manufacturer Lucid Group has announced a major restructuring plan that will reduce its U.S. workforce by approximately 1,500 employees, or about 18% of its staff, as the company intensifies efforts to improve efficiency and move closer to profitability.
The restructuring includes the elimination of the chief operating officer position and operational changes at Lucid's manufacturing facility in Casa Grande, Arizona.
Company leadership said the measures are designed to streamline decision-making, reduce costs, and better align production levels with expected market demand in an increasingly competitive electric vehicle industry.
Lucid expects the restructuring to generate approximately $158 million in annual savings, although the company anticipates incurring around $32 million in one-time severance and transition expenses associated with the workforce reduction.
The announcement comes only months after Lucid implemented another round of layoffs, underscoring the challenges facing electric vehicle manufacturers as demand growth moderates and competition intensifies.
Rising borrowing costs, pricing pressure, and changing consumer preferences have prompted several automakers to reassess production plans and cost structures.
A central component of Lucid's long-term growth strategy is the planned launch of the Cosmos SUV, a more affordable vehicle expected to start at approximately $50,000.
The model is viewed as a critical step toward expanding Lucid's customer base beyond the premium luxury segment currently served by its flagship vehicles.
Related Tweet:
Lucid Group Inc. is slashing its workforce for at least the second time this year as part of a cost-cutting plan in the face of wavering demand for its electric vehicles. https://t.co/9KFCLkYUNY
— Bloomberg (@business) June 22, 2026
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