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

[LucidfanAZ]

Assuming they have sales to match with production, I estimate they hit 30k. Knowing that Gravity will make up a bulk of their sales and with the recent pause in deliveries due to the seat issue makes me consider this a reason for the conservative range.

 

[illopp00]

Via LA Times...

MSN

 

[QuantumFire]

I’m very sad they let any software people go, they should be hiring software people. Armies of them. Get the software to where it should be, then let some software people go.

 

[Northpointe]

I’m very sad they let any software people go, they should be hiring software people. Armies of them. Get the software to where it should be, then let some software people go.

I believe the intent in making changes to the software team are to get it where it needs to be. And they are actually hiring software engineers.

 

[Hammerthyme]

They need software engineers, just perhaps not the ones who released this mess in the first place.

 

[tmichael]

Software development has obviously not gone the direction it needed. Either a new way of looking at it or, more probable, they are reducing in-house developers and utilizing contract houses that are specialists in the specific areas they need help in; however once fixed, they won't need on a full-time basis. The new facility in India is not necessarily going to be filled with employees - but it will be filled with people.

 

[DeaneG]

...Could we be seeing multiple welds replaced with larger high-pressure die castings?...

I'm curious about this too. I noticed that Rivian's R2 and Volvo's EX60 both use large high-pressure die castings in the rear. They are visible in assembly line teaser photos.
Can't comment on Lucid's Midsized assembly line teaser photos.

 

[hmp10]

Our mobile tech was here today going over some issues with one of our Gravities for which the Miami Service Center needed more information. He asked whether I had any photos or videos showing the problems. I told him that I had already sent them to one of the service managers as well as put a printout of them in the car when it was picked up to be trucked to the Service Center. It turned out the guy I sent them to had been let go as part of this workforce reduction.

I had gotten a text from this guy over a week ago about a puncture they found in a rear tire and asking whether I wanted them to replace the tire. I had texted him back several times but gotten neither a reply nor a notice that his phone line was out of service. Because I was getting no text response I had made a couple of phone calls to the Service Center but only got voicemails. My requests for a call back were not returned.

This car has been at the Service Center since February 5. They have sent me three work authorizations to sign, none of which I have signed because all they report is that they could not duplicate the problems at the Service Center and were therefore not going to do any repairs. I had sent them photos and videos of most of the problems I was reporting. The one thing for which I could not provide a photo was the pausing of music when any two of our three Lucids are on the road at the same time. This is what they wanted the mobile tech to verify, which was one of the reasons for his visit today. (The other was to replace the rear hatch latch in our newest Gravity.) He and I took the Gravity out for a drive while my partner put the Air on the road at the same time. The audio pausing occurred in both cars just as I had reported, and I made a video while the mobile tech was driving.

 

[tmichael]

Our mobile tech was here today going over some issues with one of our Gravities for which the Miami Service Center needed more information. He asked whether I had any photos or videos showing the problems. I told him that I had already sent them to one of the service managers as well as put a printout of them in the car when it was picked up to be trucked to the Service Center. It turned out the guy I sent them to had been let go as part of this workforce reduction.

I had gotten a text from this guy over a week ago about a puncture they found in a rear tire and asking whether I wanted them to replace the tire. I had texted him back several times but gotten neither a reply nor a notice that his phone line was out of service. Because I was getting no text response I had made a couple of phone calls to the Service Center but only got voicemails. My requests for a call back were not returned.

This car has been at the Service Center since February 5. They have sent me three work authorizations to sign, none of which I have signed because all they report is that they could not duplicate the problems at the Service Center and were therefore not going to do any repairs. I had sent them photos and videos of most of the problems I was reporting. The one thing for which I could not provide a photo was the pausing of music when any two of our three Lucids are on the road at the same time. This is what they wanted the mobile tech to verify, which was one of the reasons for his visit today. (The other was to replace the rear hatch latch in our newest Gravity.) He and I took the Gravity out for a drive while my partner put the Air on the road at the same time. The audio pausing occurred in both cars just as I had reported, and I made a video while the mobile tech was driving.

Triple the fun! Has to be an interesting life when you don't know if/which/when something will go wrong in your fleet. Exasperating!

 

[socktucker]

Our mobile tech was here today going over some issues with one of our Gravities for which the Miami Service Center needed more information. He asked whether I had any photos or videos showing the problems. I told him that I had already sent them to one of the service managers as well as put a printout of them in the car when it was picked up to be trucked to the Service Center. It turned out the guy I sent them to had been let go as part of this workforce reduction.

I had gotten a text from this guy over a week ago about a puncture they found in a rear tire and asking whether I wanted them to replace the tire. I had texted him back several times but gotten neither a reply nor a notice that his phone line was out of service. Because I was getting no text response I had made a couple of phone calls to the Service Center but only got voicemails. My requests for a call back were not returned.

This car has been at the Service Center since February 5. They have sent me three work authorizations to sign, none of which I have signed because all they report is that they could not duplicate the problems at the Service Center and were therefore not going to do any repairs. I had sent them photos and videos of most of the problems I was reporting. The one thing for which I could not provide a photo was the pausing of music when any two of our three Lucids are on the road at the same time. This is what they wanted the mobile tech to verify, which was one of the reasons for his visit today. (The other was to replace the rear hatch latch in our newest Gravity.) He and I took the Gravity out for a drive while my partner put the Air on the road at the same time. The audio pausing occurred in both cars just as I had reported, and I made a video while the mobile tech was driving.

Yup this is similar to the current mess i'm in. They've had my car again for over two weeks and I don't think they've even started repairs.

I had hoped Lucid would get better, but they are getting worse. I regret buying this car.

Even worse that all the repairs are things they already failed to fix, documented but somehow didn't document, or broke themselves.

 

[gaskiller]

Yup this is similar to the current mess i'm in. They've had my car again for over two weeks and I don't think they've even started repairs.

I had hoped Lucid would get better, but they are getting worse. I regret buying this car.

Even worse that all the repairs are things they already failed to fix, documented but somehow didn't document, or broke themselves.

Unfortunate, interesting few people got cars with lots of troubles. I bought mine in 2022 and has been perfect after computer upgrade. I dont understand how few cars can have so many issues when thousands of others are trouble free.

 

[hmp10]

I dont understand how few cars can have so many issues when thousands of others are trouble free.

This is a common enough phenomenon with cars that the word "lemon" became widely applied to it, with all 50 states plus the District of Columbia passing laws to address the issue. Cars are extremely complex things with thousands of components. Almost none are delivered without a few defects, many of which are easily corrected or minor enough to require little attention. But it's statistically almost inevitable that the occasional vehicle will have a significant number of issues. In many years of looking at J.D. Power surveys of initial defects, I don't remember ever seeing a brand with zero defects reported.

I have owned three Gravities -- two relatively problem-free (except for the ubiquitous software issues across the line) and one plagued with a list of problems as long as your arm. It has already had to have a drive unit, a HUD unit, and a steering wheel replaced and has racked up a cumulative two months in Service Centers in the almost eight months we've owned it. It went to the shop for the current visit accompanied by a six-page printout describing the issues it was having with its navigation maps, its Homelink geofencing, its LED interior accent lights, its second-row noises, and uneven suspension leveling -- none of which problems occurred in our other two Gravities.

 

[socktucker]

Unfortunate, interesting few people got cars with lots of troubles. I bought mine in 2022 and has been perfect after computer upgrade. I dont understand how few cars can have so many issues when thousands of others are trouble free.

They failed at expanding. QA didn’t keep up, marketing is bad, ow they’re doing layoffs and have a bad reputation. They’re probably cooked.

 

[borski]

They failed at expanding. QA didn’t keep up, marketing is bad, ow they’re doing layoffs and have a bad reputation. They’re probably cooked.

Layoffs are not a surprising thing for a company chasing profitability. They are still winning awards and don’t have a “bad reputation.” They have a reputation for struggling with software; those aren’t the same.

Anyway, only time will tell if this post ages well or not.

 

[Need4Sleep]

Layoffs are not a surprising thing for a company chasing profitability. They are still winning awards and don’t have a “bad reputation.” They have a reputation for struggling with software; those aren’t the same.

Anyway, only time will tell if this post ages well or not.

Considering the improvements to Gravity's version 3.4.1, and it's the same backbone of code to be used for midsize (if I recall correctly), I'm cautiously optimistic

 

[borski]

Considering the improvements to Gravity's version 3.4.1, and it's the same backbone of code to be used for midsize (if I recall correctly), I'm cautiously optimistic

Same.

 

[ciqez]

Here's what they say in the 10-K and an 8-K filed today about it:

Workforce Reduction

In February 2026, we announced a reduction of our current U.S. workforce (the “Plan”) intended to align with our long-term operating goals as we focus on the start of production of our Midsize platform, expansion into the robotaxi market and development of ADAS technologies, as well as the sale and distribution of our current models in existing and new geographies. We expect to substantially complete the Plan by the end of the second quarter of 2026, subject to local law and consultation requirements. As a result of the Plan, we expect to incur total restructuring charges of approximately $40 million to $42 million, primarily related to severance payments, employee benefits, and employee transition. We expect the Plan to provide us with an annualized cash savings of approximately $145 million to $150 million.

NOTE 18 – SUBSEQUENT EVENT

... On February 20, 2026, the Company announced a reduction of its current U.S. workforce that intended to align with its long-term operating goals as it focuses on the start of production of its Midsize platform, expansion into the robotaxi market and development of ADAS technologies, as well as the sale and distribution of its current models in existing and new geographies. The Company expects to substantially complete the Plan by the end of the second quarter of 2026, subject to local law and consultation requirements. As a result of the Plan, the Company expects to incur total restructuring charges of approximately $40 million to $42 million, primarily related to severance payments, employee benefits, and employee transition.

Item 2.05 Costs Associated with Exit or Disposal Activities.

On February 20, 2026, in order to optimize the Company’s operating expenses as it focuses on the start of production of the Midsize platform, expansion into the robotaxi market and development of ADAS technologies, as well as the sale and distribution of its current models in existing and new geographies, the Company announced a reduction of the Company’s current U.S. workforce by approximately 12 percent, excluding hourly production workers in manufacturing, logistics, and quality (the “Plan”). The Plan is expected to provide the Company with cost savings of approximately $500 million over a three-year period. The Company estimates that it will incur charges of $40 million to $42 million related to severance, employee benefits, and employee transition. The Company expects to substantially complete the Plan by the end of the second quarter of 2026, subject to local law and consultation requirements.


Reading through these 10-K filings is a stark reminder of how brutal corporate restructuring can be, especially with a 12 percent workforce reduction. While the company is aiming for long-term savings to fund their robotaxi tech, it’s incredibly tough for the employees caught in the middle. When I went through a sudden layoff myself, reading financial reports just made the anxiety worse. The best move was immediately looking outward, so I decided to visit the author's site and explore their international job board. It opened my eyes to roles outside my local market and helped me land a new gig fast. Keeping your options global is a solid way to bounce back.

Wow, looks like this company is pulling off a classic corporate pivot.