Lucid eliminates COO role, plans layoffs impacting 18%

June 22, 2026 - 23:19

Luxury electric vehicle maker Lucid Group announced a significant restructuring plan that includes laying off approximately 18% of its workforce. The company also confirmed it is eliminating the Chief Operating Officer position as part of a broader effort to streamline operations.

A company spokesperson stated that the moves are intended to "simplify the company" and "sharpen execution" during a challenging period for the EV industry. The layoffs will affect roughly 1,300 employees across various departments. Lucid currently employs around 6,500 people.

The decision comes as the automaker faces persistent production bottlenecks and softer-than-expected demand for its Air sedan. Despite reporting a record number of vehicle deliveries in the most recent quarter, the company continues to burn through cash at a rapid pace. Lucid has been working to ramp up production of its Gravity SUV, which is seen as a critical vehicle for reaching a broader market.

The elimination of the COO role suggests a flattening of the management structure. CEO Peter Rawlinson will take on more direct oversight of daily operations. The company is also reviewing its spending on factory expansion and supplier contracts.

Lucid joins a growing list of automakers cutting costs as the EV market cools. Rivals like Rivian and Ford have also announced layoffs in recent months. The company says it expects the restructuring to save hundreds of millions of dollars annually and help it reach profitability by late 2026.