Lucid Motors cuts 18% staff as Arizona shift ends

Lucid Motors layoffs will cut roughly 18% of the company’s workforce—about 1,500 roles—while the EV maker also ends the second production shift at its Casa Grande, Arizona plant.

The reduction comes just four months after Lucid carried out another broad workforce cut of 12%. The latest move arrives as demand growth in the US electric-vehicle market moderates and several automakers scale back earlier EV targets.

Workforce reduction paired with factory shift changes

Lucid confirmed on Monday that it has eliminated the second production shift at its Arizona manufacturing site. Removing a shift typically signals a recalibration of output plans, particularly when paired with headcount reductions across the business.

The company framed the restructuring as an effort to streamline operations and improve competitiveness. Lucid said the changes are intended to simplify the organization and tighten execution over time.

This is the second large layoff in 2026, following the earlier 12% reduction reported four months ago. Taken together, the two rounds represent a rapid contraction in staffing within a short period.

New CEO Napoli makes first major operational move

The job cuts mark the first significant action under CEO Silvio Napoli, who formally assumed the role on June 1 after being selected earlier in the year. The layoff decision lands less than a month into his tenure.

Napoli’s background differs from that of many EV executives. He built his career at Switzerland-based Schindler Group—known for elevators and escalators—where he served as chairman and chief executive.

Lucid is making these changes amid a volatile leadership environment. The company has experienced repeated senior-level turnover, with more than a dozen top executives cycling out over roughly two years.

Executive departures widen as COO role is removed

Alongside the restructuring, Lucid disclosed that Marc Winterhoff, who served as interim CEO for more than a year, has departed. Winterhoff had been expected to remain as chief operating officer after Napoli’s arrival, but Lucid said it eliminated the COO position entirely.

In a regulatory filing, the company noted that Winterhoff will receive severance and “certain security support,” and that he will retain his company vehicle. Removing the COO role concentrates operational oversight differently, and underscores the breadth of the reorganization.

Winterhoff’s exit follows earlier changes in the executive ranks. Founder and long-serving CEO Peter Rawlinson stepped down abruptly in February 2025, and chief engineer Eric Bach was dismissed later in 2025 and subsequently filed a wrongful termination lawsuit.

Another senior leader, Emad Dlala, resigned earlier this month only a few months after being promoted. The sequence of departures and role eliminations suggests Lucid’s leadership structure remains in flux even as it attempts to stabilize manufacturing and cost controls.

For Lucid, the immediate implications are operational and reputational: fewer employees, reduced factory shifts, and another senior shakeup can affect production planning, morale, and investor perception. Next steps to watch include whether additional capacity adjustments follow at Casa Grande and how quickly Napoli fills key leadership gaps created by the COO role’s removal and ongoing executive turnover.