Lucid Group said Monday it is cutting its U.S. workforce by approximately 18% as part of a cost-savings plan.

The all-electric vehicle maker said its plan would give it annualized cost savings of approximately $158 million.

The company also said Monday that its chief operating officer, Marc Winterhoff, is leaving the company effective immediately. Winterhoff was interim CEO at the company until Silvio Napoli took over the top job on June 1. The role of COO has been eliminated, Lucid said.

Lucid’s workforce reductions include full-time employees, contractors and hourly production workers in manufacturing, according to a filing with the Securities and Exchange Commission. The automaker had about 9,000 employees globally as of Dec. 31.

“These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions,” a Lucid spokesperson said in a statement. “They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time.”

In February, Lucid laid off about 12% of its U.S. workforce in a push for profitability.

Lucid said Monday it expects to incur cash charges of approximately $32 million related to severance, employee benefits and employee transition associated with the latest cuts, according to its filing.

The automaker also said it would be eliminating the second shift of production at its AMP-1 factory in Arizona.

Lucid said last month that Napoli would be evaluating the company’s business operations. It suspended its guidance as a result, adding that it needs to lower its “elevated inventory” of vehicles, which for automakers has historically meant decreasing or idling vehicle production.

Lucid held its first investor day in nearly five years in March. It said at the time that it expects to be cash-flow positive by later this decade.

While Lucid has been able to increase sales and narrow losses, the company lost $2.7 billion on revenue of $1.35 billion in 2025. It had negative free cash flow of $3.8 billion last year, roughly 31% larger than the year earlier.

Lucid and its electric vehicle peers are increasingly facing a more challenging market than they did in recent years amid slower-than-expected adoption of EVs and changing regulations under the Trump administration, including the elimination of a $7,500 federal incentive for purchasing an EV.

— CNBC’s Michael Wayland contributed to this report.