Just three months ago, Lucid Motors unveiled plans for multiple new electric vehicles, aiming for profitability with smaller models. Fast forward to today, and the startup has announced a significant job cut, laying off approximately 1,500 workers – 18% of its workforce – in two rounds this year.

In February, Lucid had already trimmed 12% of its staff, highlighting the volatile nature of the electric vehicle industry. In its latest filing with the Securities and Exchange Commission, Lucid cited a streamlined organizational structure and optimized operating expenses as reasons for these cuts, aiming to improve profitability and cash flow generation.

Adding to the downsizing, Lucid has ceased operations at its second factory shift in Arizona, saving $158 million but incurring a severance cost of $32 million. This move includes Marc Winterhoff, who stepped down as COO after the abrupt departure of Peter Rawlinson as CEO. With this restructuring, Lucid is also eliminating the COO role altogether.

The electric vehicle sector continues to face challenges, with companies like Tesla and Rivian also experiencing financial pressures and workforce reductions. As more players enter the market, maintaining profitability remains a significant hurdle for Lucid and others in the industry.