Lucid Group, Inc. LCID is reducing its U.S. workforce by roughly 18% as part of a restructuring initiative to lower costs. The company estimates that the move will generate annualized savings of about $158 million.
The layoffs will affect full-time employees, contractors and hourly manufacturing workers. As of Dec. 31, Lucid employed approximately 9,000 people worldwide. The workforce reduction is intended to better align production with customer demand, lower inventory levels, address challenging market conditions, streamline operations and enhance competitiveness.
This marks Lucid’s second major round of job cuts in recent months, following a reduction of about 12% of its U.S. workforce in February as part of efforts to move closer to profitability.
The company expects to record around $32 million in cash charges related to severance payments, employee benefits and transition support. Lucid also plans to discontinue the second production shift at its AMP-1 manufacturing facility in Arizona.
Leadership changes have continued as well. Former CEO Peter Rawlinson stepped down in February. More recently, former COO and interim CEO Marc Winterhoff departed the company, leading Lucid to eliminate the COO role. Silvio Napoli assumed the CEO position on June 1, 2026. The automaker has also seen the departure of several senior engineering leaders, including Emad Dlala and Zach Walker.
Despite these changes, Lucid remains on track to unveil its upcoming Cosmos SUV this summer. Expected to be priced below $50,000, the vehicle is being engineered with a targeted drag coefficient of 0.22 and an estimated driving range exceeding 300 miles. The Cosmos is anticipated to launch in 2027, followed by the Earth SUV and another more rugged, off-road-oriented model based on the same vehicle platform.
LCID’s Zacks Rank & Key Picks
Lucid currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELHY, Douglas Dynamics, Inc. PLOW and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and 2027 has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 12 cents over the past 60 days, while the EPS estimate for 2027 has improved a penny over the past 30 days.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lucid Group, Inc. (LCID): Free Stock Analysis Report
Douglas Dynamics, Inc. (PLOW): Free Stock Analysis Report
Garrett Motion Inc. (GTX): Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELHY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).