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

prgarg said:
Do you know for sure they are only cutting corporate jobs? The press release didn't mention it as far as I remember
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Basing it off of “We have implemented a 12% reduction of our U.S. workforce, excluding hourly production employees in manufacturing, logistics, and quality.” from the memo
 
It’s also worth recognizing that Lucid is still adding new positions with a significant number of those roles in Saudi Arabia. As the company evolves, and adds manufacturing capabilities outside of the U.S., so too will their workforce.
 
dale246 said:
Service is definitely starting to slip from these cuts. Dropped off my Gravity 4 days ago and no one has even looked at it yet (Drive System warning). I am dreading bringing my Air in for its annual service next week.
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I mean in general no layoff is going to make the current/existing employees perform better in the immediate aftermath...
 
I wouldn’t think it is being used as a stick to punish poor performing employes. They had early engineers working on Air, Gravity and Earth at the same time. As initial products gain production level development, those engineers are not required. Future platforms will be developed with the knowledge of what worked and didn’t work in the first iterations. There is almost always “fluff” from kingdom building and overstaffing - management just has to decide what they no longer need (sometimes to their own detriment) and make difficult decisions. It is always a drag for those not expecting to be affected, but is also a normal part of building something from scratch.
 
REHPortland said:
Not good news…BTW I requested help from Lucid Customer Service ten days ago. No response, yet. My question to CS, Why does my app show the car a few miles from it’s actual location? (The car is in my condo parking garage and hasn’t moved for a few eeks…). Maybe they are laying off the Customer Service staff?
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Signal transmission through condo walls are weak....
 
illopp00 said:
I mean in general no layoff is going to make the current/existing employees perform better in the immediate aftermath...
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so you expect companies to keep on unnecessary employees at expense to help their morale? Thats how you drive a company to failure. Capitalism does not care about your feelings.
 
I am not an IT or coding expert but surmise that Lucid may well be adopting more AI to improve productivity. I may have missed such a comment above, and if so my apologies.
 
The cuts, affected professionals in battery testing and R&D, EV test and validation, continuous improvement and reliability engineering, simulation and thermal engineering, vehicle logistics, and corporate innovation.

This is from electric-vehicles.com
 
GravitMe said:
The cuts, affected professionals in battery testing and R&D, EV test and validation, continuous improvement and reliability engineering, simulation and thermal engineering, vehicle logistics, and corporate innovation.

This is from electric-vehicles.com
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That website is banned (and is the only one) because it is regularly a source of misinformation. That information is not sourced at all (in the “article”) and thus is untrustworthy; and it has regularly been wrong before.

This may be true. Or it may not be. I have no idea. But that website saying it is doesn’t make it any more or less true, fwiw.
 
gaskiller said:
so you expect companies to keep on unnecessary employees at expense to help their morale? Thats how you drive a company to failure. Capitalism does not care about your feelings.
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There isn't a company in history that laid off their way to leadership and success....be prepared for Lucid to guide for flat sales numbers this year.
 
illopp00 said:
There isn't a company in history that laid off their way to leadership and success....be prepared for Lucid to guide for flat sales numbers this year.
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Could be part of a transition to SA though? Right? Someone suggested that and I can see how that's possible.
 
I mean yes, they can keep costs flat by laying off in US and using that money to hire in the AMP-2 factory in Saudi for sure. They aren't exactly short on cash runway; they have stock problems with executing on EPS.
 
illopp00 said:
There isn't a company in history that laid off their way to leadership and success....be prepared for Lucid to guide for flat sales numbers this year.
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There are plenty of companies that have had layoffs and still ended up successful.

Partial list:
  • Meta (Facebook) (2022-2023): After laying off over 11,000 employees in November 2022 to cut costs, the company saw its stock price rise by 19% as earnings improved.
  • Airbnb (2020): During the COVID-19 pandemic, Airbnb laid off a significant portion of its workforce, restructured its business, and successfully IPO'd shortly after.
  • Amazon (2023): Following layoffs in early 2023, the company reported substantial earnings per employee, demonstrating increased efficiency.
  • Microsoft (2009 & 2023): Microsoft executed its first major layoffs in 2009 while remaining highly profitable, and again in 2023, continuing to be a dominant tech leader.
  • Apple (1990s): Before its massive success in the 2000s, Apple underwent significant restructuring and workforce reductions before Steve Jobs returned to innovate new products.
  • Ford Motor Company (2001): The company cut 35,000 jobs during an economic contraction to restructure, eventually stabilizing and growing its business.
 
borski said:
There are plenty of companies that have had layoffs and still ended up successful.

Partial list:
  • Meta (Facebook) (2022-2023): After laying off over 11,000 employees in November 2022 to cut costs, the company saw its stock price rise by 19% as earnings improved.
  • Airbnb (2020): During the COVID-19 pandemic, Airbnb laid off a significant portion of its workforce, restructured its business, and successfully IPO'd shortly after.
  • Amazon (2023): Following layoffs in early 2023, the company reported substantial earnings per employee, demonstrating increased efficiency.
  • Microsoft (2009 & 2023): Microsoft executed its first major layoffs in 2009 while remaining highly profitable, and again in 2023, continuing to be a dominant tech leader.
  • Apple (1990s): Before its massive success in the 2000s, Apple underwent significant restructuring and workforce reductions before Steve Jobs returned to innovate new products.
  • Ford Motor Company (2001): The company cut 35,000 jobs during an economic contraction to restructure, eventually stabilizing and growing its business.
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Thanks. You did what I was too lazy to do - and there are sooo many more - especially when you target particular areas of a company. What happens when a company outsources? Internal employees are replaced by outside contractors. What do robots do on an assembly liine? Replace labor.

Of course, you can't create growth by saving money, but you can create earnings which can be spent on growth - and Lucid has ALOT of things to pay for, aside from showing some sort of potential return on investment of the shareholders.

UPS, IBM, Cisco, SAP, Intel, AMD, HP, Dell...
 
borski said:
Basing it off of “We have implemented a 12% reduction of our U.S. workforce, excluding hourly production employees in manufacturing, logistics, and quality.” from the memo
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Yup. this tracks.
I received an email a few weeks ago that Sales Special that facilitated my Gravity purchase, left Lucid.
And, when on phone call with Service department last week, I was told that they'll need only 2-3 days to resolve
my work order because they had just hired 2 new Service Techs.
 
Anyways, earnings are tomorrow so we can hear leadership's story directly instead of conjecture....
 
Although PPI and raw materials costs have been going straight up this year so things like supply of copper will be more expensive...
 
They buy cells and are hopefully hedging raw material costs and have long-term contracts, so I sure hope the most expensive component of the car is not the highest percentage increase in cost. Running manufacturing and assembly at 20 or 30 percent of capacity is very expensive - hopefully higher utilization during 4th quarter has benefitted production costs over 3rd quarter...
 
gaskiller said:
Here, let me indulge you.....you complain that they are spending too much and complain when they are trying to cut spending, make up your mind. Job cuts are always a positive unless they are cutting production, and they are not cutting production! Common sense.
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"Job cuts are always a positive unless they are cutting production"

Give me a break. So Lucid should just close its service centers? Its mobile service vans? Its sales team? Its software design team?

When there is excess staff, job cuts make sense. But to say they always are a positive is nonsense.
 
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