American EV maker Lucid facing strong headwinds

This is the second major executive change in recent months as it tries to ​boost profitability amid growing competition. Shares of the company were down about ⁠4%, according to a report by Reuters.

The job cuts highlight mounting pressure on EV makers such as Lucid ​to rein in costs as consumers gravitate toward lower-priced models, while intensifying competition from ​established automakers and newer entrants weighs on profitability.

Lucid declined to provide details on the number of employees impacted. However, the company, which had about 9 000 employees globally as of December 31, ​says the cuts will affect full-time employees, contractors and hourly manufacturing workers. It ​also scrapped the second shift at its AMP-1 factory, its primary EV production facility.

In February, ‌Lucid ⁠had cut 12% of its US workforce as it sought to conserve cash in an industry marked by heavy spending.

The EV maker has been grappling with operational setbacks, including a supplier-related issue that disrupted deliveries of its Gravity SUV in February. Last ​month, the company suspended its ​2026 production outlook, ⁠pending a review of the business.

The automaker has been counting on its Gravity SUV and upcoming mid-size vehicle platform to ​fuel growth, while pursuing a robotaxi rollout through partnerships with ​Uber and ⁠self-driving startup Nuro.

The restructuring will result in about R525 million ($32 million) in severance and other employee-related charges, while delivering annualized cost savings of approximately R2 590 million ($158 million), according to Lucid.