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Lucid Motors slashes 12% of its workforce as it seeks profitability (Feb 2026)

This may explain the temporary production stop
 
prgarg said:
This may explain the temporary production stop
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"Hourly workers on the manufacturing, logistics, and quality teams are not affected by the cuts, according to the memo, which was sent to employees being spared by the layoffs." (from the TechCrunch article).
 
EZEVDriver said:
"Hourly workers on the manufacturing, logistics, and quality teams are not affected by the cuts, according to the memo, which was sent to employees being spared by the layoffs." (from the TechCrunch article).
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Yep, should had read the article before posting, my bad 🙂
 
They may be getting pressure from the Saudis. They have been scrutinizing their PIF investments of late.
 
socktucker said:
Can’t wait for someone to try and spin this as a positive development.
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I’ll take a stab. They clearly were a fat company for their growth stage. So between this and possible tariff refund; how close to profitable do they get this year? :)
 
socktucker said:
Can’t wait for someone to try and spin this as a positive development.
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Well, it isn’t necessarily a bad development either (with the obvious exception being to the people who lost their jobs) considering layoffs are very standard in large companies.

“To improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” according to an internal memo that was obtained by TechCrunch.”

Doesn’t scream doom and gloom for the company to me.
 
But another ATL coming soon 😉
Lucid technology is greatest but there stock is a joke.
 
Probably doing the standard SV thing and firing everyone in software and off-shoring to India for 1/3rd the cost....
 
socktucker said:
Can’t wait for someone to try and spin this as a positive development.
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Don't need to spin it.

PIF is still backing them, the midsize platform is on track, software and ADAS are explicitly protected in the memo.

12% is a profitability restructuring, not a survival move. Companies do this before scaling, not on the way down. It's ugly but it's common.

That's literally how these things work. Lucid is not the only one, nor will they be the last.

Sad for those affected, as always, but a bit of a nothing-burger from a 'what does this mean for Lucid's longevity' perspective.
 
illopp00 said:
Probably doing the standard SV thing and firing everyone in software and off-shoring to India for 1/3rd the cost....
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Which company do you have as a reference, in the past decade or two, of doing this 'standard SV thing'? Because I've worked in SV for the last 15 years and this is not 'standard.'
 
borski said:
Don't need to spin it.

PIF is still backing them, the midsize platform is on track, software and ADAS are explicitly protected in the memo.

12% is a profitability restructuring, not a survival move. Companies do this before scaling, not on the way down. It's ugly but it's common.

That's literally how these things work. Lucid is not the only one, nor will they be the last.

Sad for those affected, as always, but a bit of a nothing-burger from a 'what does this mean for Lucid's longevity' perspective.
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Software and ADAS people WERE let go...
 
GoFast said:
Software and ADAS people WERE let go...
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I'm sure they were. I don't know what percentage, of course, but that's not actually what I meant. It's entirely possible there is some reshuffling going on - I didn't mean to imply nobody on software or ADAS was let go. It would be more unlikely for nobody on SW/ADAS to be let go in a cut of 12% of the workforce.

I meant that "continued ADAS and software development" as a line in the memo bodes well for the continued development of software and ADAS being a priority moving forward.
 
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L-Dude said:
I suspect that is a pretty small number on a percentage basis.
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~8.5% of the company’s roughly 350,000 corporate employees.
 
Need to shift from some marketing, R&D headcount to operational for EU country expansion, service center and mid-size pre-production and hopefully lots of testing....Only way to know will be to check the financials in 2Q to see actually total headcount and costs....

Service they do at cost and it has to scale with revenue and units sold, that is a bit of a financial challenge because you can't really do it ahead of time that well, always running slightly behind the ball...
 
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