---
title: "Lucid to Lay Off Nearly a Fifth of Its Workforce"
description: "Electric automaker Lucid was already struggling to deliver cars, and now it's seeing stiffer competition at a time of economic instability."
date: "2023-03-29"
modified: "2023-03-29"
authors:
  - name: "Peter Holderith"
    job_title: "Contributor"
    link: "https://www.thedrive.com/authors/peter-holderith"
url: "https://www.thedrive.com/news/lucid-to-lay-off-nearly-a-fifth-of-its-workforce"
categories:
  - "Lucid News"
  - "News"
  - "News by Brand"
tags:
  - "Electric Vehicle"
  - "Lucid"
---

# Lucid to Lay Off Nearly a Fifth of Its Workforce

![](<https://www.thedrive.com/wp-content/uploads/2023/03/29/lucid-layoffs-lead-1.jpg>)
*\<em\>Lucid\</em\>*

Electric automaker [Lucid](<https://www.thedrive.com/category/lucid-news>) has announced plans to cut roughly 18% of its workforce. The layoffs amount to around 1,300 employees and come alongside news of a poor [production forecast](<https://www.thedrive.com/news/lucid-motors-jacks-up-pricing>) for 2022 as well as an alleged "major drop" in orders.

Lucid CEO Peter Rawlinson said all "non-critical spending" will be also reviewed, according to [*Reuters*](<https://www.reuters.com/business/autos-transportation/lucid-plans-layoff-hundreds-employees-report-2023-03-28/>), and that the layoffs do not just affect low-level employees. The cuts are claimed to come from "nearly every organization and level," from executives to line workers.

![](<https://www.thedrive.com/wp-content/uploads/2023/03/29/lucid-layoffs-inline-A.jpg>)
**Lucid**

Many automakers have announced staffing cuts in the near term citing recession fears. Ford and Rivian have detailed layoffs, and General Motors is offering [widespread buyouts](<https://www.thedrive.com/news/gm-wants-to-buy-out-salaried-workers-before-uaw-talks>) to employees as well. They follow the tech industry's own mass layoffs as giants like Amazon, Meta, and Microsoft endure far-reaching restructurings.

Lucid is seeing more competition from [rapidly electrifying](<https://www.thedrive.com/news/new-ford-electric-truck-project-t3-to-start-production-in-2025>) legacy automakers as well as from the biggest player in the EV game, Tesla. Elon Musk's manufacturing juggernaut has been [slashing prices](<https://www.thedrive.com/news/teslas-new-price-cuts-may-sink-used-values-later-and-owners-arent-happy>) to put pressure on its competition, but not every car company can respond in kind. Lucid, which has long struggled with production issues, has not announced any discounts on its [Air sedan](<https://www.thedrive.com/car-reviews/2022-lucid-air-review-price-options-specs-impressions-new-cars-evs>), which is currently the only vehicle it makes.

Whether this is just a bump in the road for the young company or a sign of unresolvable distress has yet to be seen. An 18% cut is a bad sign in any case, though.

*Got tips? Send 'em to tips@thedrive.com*

## Author
Peter Holderith is a former staff writer for The Drive. He enjoys covering the regular news cycle, writing reviews, and hunting down long features on obscure pieces of automotive history.

### Author social links  
[LinkedIn](<https://www.linkedin.com/in/peter-h-5ba447192/>)  
[Twitter](<https://twitter.com/_baldtires>)