Lucid cuts hundreds of jobs to accelerate mid-size vehicle launch in 2026

Lucid reduces 12% of its workforce to improve margins, focusing on the launch of the mid-size vehicle in 2026 and the expansion of the Gravity.

What happened

Lucid announced a round of cuts corresponding to 12% of its workforce, affecting hundreds of employees. Production line workers in Arizona were not affected by the cuts.

• Reduction of 12% of the global team.
• Production workers in Arizona remain preserved.
• Focus on better margins, launch of the mid-size platform in 2026, and expansion of Gravity sales.

Context and recent numbers

The company reported that the exact number of layoffs was not disclosed, but Lucid had about 6,800 full-time employees globally at the end of 2024, indicating that the layoffs total hundreds. The company stated that the reductions aim to simplify operations and improve gross margin, paving the way for long-term growth.

2025 was a turbulent year for the sector: challenging production, supply chain disruptions, rising costs, and policy changes that impacted demand for premium vehicles. Higher interest rates also weighed on purchases, leading Lucid to offer discounts on the Air last year.

Current operation and launches

Currently, Lucid produces the Air and the Gravity SUV. In November, the Gravity Touring SUV was presented, with a starting price of US$ 79,900, opening a more accessible entry line compared to previous models. In the fourth quarter, the company delivered a record 5,345 vehicles, driven by the good initial acceptance of the Gravity SUV, which offset weaker demand after certain US tax credits expired.

Lucid ended the production year with approximately 18,300 vehicles manufactured, more than double the number recorded the previous year.

What lies ahead

The company plans to start production of a mid-size vehicle platform in late 2026. Furthermore, Lucid continues to invest in advanced driver-assistance systems (ADAS) and software, maintaining momentum in Air and Gravity sales.

Beyond the core lineup, the company has expanded its presence in autonomous mobility, with a partnership announced with Uber and robotics company Nuro to develop a fleet of robotaxis.

Lucid shares fell less than 1% during Friday trading in New York, signaling that the reorganization reflects the profitability challenges faced by premium EV manufacturers as the market matures and competition intensifies.

Invitation for opinion

Leave your comment: do you believe staff cuts are necessary to maintain margins in times of volatile demand, or do you fear impacts on innovation and launches? We want to know your opinion on Lucid's path toward the mid-size vehicle launch.