Lucid Eyes $158M In Cost Savings After 2nd Round Of Layoffs This Year – Set To Reduce Shifts At Its Biggest Manufacturing Plant

The EV maker said it plans to cut around 18% of its U.S. workforce, including full-time employees, contractors, and hourly production workers.

• Chief Operating Officer Marc Winterhoff departed the company after the role was eliminated.
• Lucid cut the second production shift at its AMP-1 factory in Arizona, the company’s biggest manufacturing facility.
• The company expects about $32 million in one-time charges related to severance.

Lucid Group (LCID) has launched a major restructuring effort under newly appointed CEO Silvio Napoli, marking the first significant operational overhaul since he took the helm on June 1.

LCID stock, which has been under heavy selling pressure this year, traded more than 5% lower at the time of writing.

LCID Cuts 18% Workforce

The electric vehicle maker said it plans to cut around 18% of its U.S. workforce, including full-time employees, contractors, and hourly production workers, as part of a broader push to improve profitability and generate positive cash flow, according to an SEC filing on Monday.

This marks the second mass layoff this year, following Lucid's 12% reduction in its U.S. workforce in February as it grappled with weakening demand for premium electric vehicles.

As part of the changes, Chief Operating Officer Marc Winterhoff has departed after the role was eliminated. Winterhoff had served as interim CEO for more than a year before Napoli’s appointment.

As part of the restructuring, Lucid cut the second production shift at its AMP-1 factory in Arizona, the company’s biggest manufacturing facility, where it builds the Lucid Air sedan and Gravity SUV.

Why Did LCID Reduce Its Workforce?

The EV maker has been struggling with profitability, posting a net loss per share in each of its 19 previous quarters, according to Fiscal.ai data. The company has also been consistently missing its quarterly revenue targets.

Lucid expects the restructuring plan to deliver roughly $158 million in annualized cost savings, although it anticipates about $32 million in one-time charges related to severance and employee benefits.

What Is Retail’s Take On LCID?

Retail sentiment surrounding LCID on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier.

LCID shares have tanked more than 54% so far this year, underperforming rivals Tesla, Nio, and XPeng.

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