EV maker Lucid to lay off more than 300 employees - Los Angeles Times

Los Angeles Times

by Caroline Petrow-Cohen

February 26, 2026

AI-Generated Deep Dive Summary

Lucid, a luxury electric vehicle manufacturer based in the Bay Area, has announced the layoff of 319 employees at its Newark, Calif., headquarters. This reduction, which takes effect in April, represents a 12% cut to the company's workforce and is part of an effort to boost efficiency amid significant financial losses. Over the past year, Lucid has faced challenges as demand for electric vehicles has softened, and consumers have shifted toward more affordable options. Despite efforts to enhance its brand image through high-profile marketing campaigns featuring Timothée Chalamet and James Mangold's short film, the company reported $2.7 billion in losses for both 2024 and 2025. The layoffs will disproportionately impact engineering teams, with software and hardware engineers among those affected. Data scientists, project managers, and designers are also being impacted, though manufacturing staff in Pinal County, Ariz., remain unaffected. Lucid emphasized that its focus remains on production of its Midsize platform and growing sales of the Gravity SUV and Air sedan. The company has struggled to turn a profit despite a 55% increase in vehicle deliveries last year, reaching 15,841 units. Lucid's financial struggles are part of a broader challenge facing luxury EV manufacturers. While competitors like Tesla and Rivian have also encountered difficulties, Lucid's situation is compounded by its high costs and the competitive nature of the EV market. The company has been working to improve its gross margins and long-term growth since going public in 2021 with funding from Saudi Arabia’s sovereign wealth fund. These layoffs highlight the ongoing pressures faced by electric vehicle companies as they navigate a competitive and evolving industry landscape. For readers interested in tech, automotive trends, or labor market dynamics, Lucid's challenges provide insight into the broader economic and operational challenges facing EV manufacturers in the U.S.

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Originally published on Los Angeles Times on 2/26/2026