Lucid Motors Announces Major Layoffs in Latest Bid for Financial Survival

Lucid Group Inc. is cutting its global workforce by about 12%, a move affecting up to 800 employees. The announcement, made Thursday, is the latest drastic step by the electric vehicle maker to stem massive financial losses. This follows an 18% reduction in 2024 and other cuts throughout last year.

Despite earning praise for its advanced Lucid Air sedan, the company has consistently failed to turn engineering acclaim into sales or profit. Its most recent earnings showed operating losses dwarfing revenue, a persistent problem since deliveries began.

CEO Peter Rawlinson points to Lucid's proprietary technology as its future foundation. That future, however, is heavily reliant on the success of its new Gravity SUV, which started limited deliveries in late 2025. The vehicle enters a fiercely competitive luxury segment where demand is stronger than for sedans. While early reviews are positive, Lucid must now prove it can build and sell the Gravity at a meaningful scale. The company produced just over 9,000 vehicles in all of 2024.

Lucid's distinct advantage is the deep financial support from Saudi Arabia's Public Investment Fund (PIF), its majority owner. PIF has provided billions to keep the company afloat, aligning with Saudi economic diversification goals. This backing sets Lucid apart from failed startups like Fisker. Yet, the fund's investment is currently worth far less than its original outlay, and patience is not infinite. A new factory in Saudi Arabia represents both a commitment to its benefactor and a major new expense.

The layoffs, reportedly focused on corporate and support roles rather than core manufacturing and engineering, aim to preserve operations for the Gravity launch. Repeated job cuts, however, risk damaging morale and the ability to recruit in a tight talent market.

Analysts suggest profitability remains years away, likely not before 2028. For now, all eyes are on the Gravity's production numbers and whether Lucid can finally narrow the steep loss it makes on every vehicle it sells.

Source: Webpronews