Clear layoffs: Electric car maker cuts 18% of staff, eliminates COO Marc Winterhoff’s position
Luxury electric car pioneer Lucid will lay off 18% of its U.S. employees, according to a filing filed with the Consumer Protection Association. us Securities and Exchange Commission (SEC). Most of the impact will be absorbed by its AMP-1 plant in Arizona, with everyone from full-time to hourly manufacturing workers facing layoffs. But the first to be eliminated will be the chief operating officer (COO) position
As a result, Marc Winterhoff left the company. Winterhoff served as Lucid’s interim CEO in early 2025 before returning to the role of COO when a new CEO was appointed. Even if the COO position is eliminated, Winterhoff will not leave without compensation. Lucid said he will receive a severance package. this company It also agreed to continue to provide certain security support. Winterhoff will also be allowed to keep his company vehicle, according to SEC filings
Why Lucid is laying off employees
A spokesperson for Lucid told Business Insider that the purpose of the reorganization is to make the company simpler and more efficient. The company said the decisions were difficult but necessary to match production with customer demand. Lucid also hopes to reduce excess inventory and respond to soft market conditions. The broader goal is to improve execution and become more competitive over time, the company said.
Lucid expects the layoffs and restructuring to result in annual cost savings of approximately $158 million. The company will also cancel its second production shift Arizona factory. Lucid said the change was made to align production plans with anticipated customer demand, documents show.
This isn’t the first time Lucid has laid off employees. According to Business Insider, the company has laid off about 12% of its employees in the United States in February 2026.
New CEO takes office
Lucid has gone through significant leadership changes over the past year and a half. Former CEO Peter Rawlinson unexpectedly resigned in February 2025. Following Rawlinson’s departure, Winterhoff served as interim CEO. Several senior executives have also left the company in recent months.
On June 1, Lucid officially appointed Silvio Napoli as its permanent CEO. Naples once led Schindler Group, an elevator manufacturing company.
Lucid faces huge challenges
As Lucid is still trying to figure out a mass-market model for a cheaper SUV it will launch later this year that will sell for under $50,000, Napoli has taken over its plans, Business Insider reports. Lucid hopes the new SUV will compete with the Tesla Model Y and Rivian R2. The company is also pursuing robotaxi initiatives through partnerships with Uber and Nuro.
Its Gravity SUV had earlier faced a supply chain crunch as deliveries were hampered. Its software system is also not ordinary, and many consumers have complained about it. While Lucid has solved most of its problems, it’s won praise for its state-of-the-art engineering — one of which is its fuel-efficient electric sedan, the Lucid Air.
