Lucid Group has announced it will cut roughly 18% of its US workforce, marking one of its largest restructuring moves since going public. The company reported revenue of $1.4B for FY2025, up 67.6% year-over-year, but continues to bleed cash with a deeply negative net margin of -199.3% and a diluted EPS of -$12.09 — meaning it is spending roughly three dollars for every dollar it earns.

The layoffs touch a company that remains heavily dependent on backing from Saudi Arabia's Public Investment Fund, which has repeatedly stepped in to fund operations. The workforce reduction is a direct acknowledgment that the current cost structure is unsustainable even as revenue scales rapidly.

For bulls, the revenue growth trajectory is real — 67.6% YoY is not a trivial number — and a meaningful headcount reduction could be the first credible signal that management is pivoting toward capital discipline. If the cuts translate into operating leverage, the path to gross margin improvement becomes more tangible.

For bears, a -199.3% net margin means the losses per dollar of revenue are still enormous, and layoffs alone are unlikely to close that gap. The risk is that cutting engineers and production staff slows the ramp of the Gravity SUV and future models, undermining the very revenue growth that is the only bullish data point here.

The key variables to watch: whether Lucid issues updated guidance alongside the restructuring, how the PIF responds (another capital infusion vs. allowing the company to run leaner), and whether the Gravity SUV launch timeline is affected by the headcount reduction.