CASA GRANDE, AZ (AZFamily) — A decade after the people of Casa Grande were sold an electric-vehicle dream — with thousands of jobs and millions of dollars in investment promised — some locals say the reality has been far different. It’s only gotten worse after Lucid Motors announced another round of layoffs.
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This week, Lucid announced it is cutting 18% of its workforce across the board. The company produces its electric vehicles at its massive Casa Grande manufacturing plant, and 705 employees there were laid off.
For businesses in Casa Grande, this could mean fewer customers walking through the door.
“We got to see a lot of those folks come in here,” said Michael Hill, a manager at Cook-E-Jar Bakery and Cafe in downtown Casa Grande. “A lot of buzz when it was first built and everybody was kind of parading around happily and excited.”
He said Lucid employees at one point made up as much as 15% of his regular business.
For those in the community, the latest cuts feel like part of a familiar pattern. Lucid layoffs began in 2023, again in 2024 despite an expansion, and this marks the second workforce reduction in 2026.
“If you want to get laid off, work there,” said Roy Delsi. He was born and raised in Casa Grande.
For Melody Johnson, the impact is personal. Johnson said her husband worked at Lucid for five years and made it through multiple rounds of cuts — until now.
“Every time we were holding our breath,” Johnson said. “We’re still in shock and we have to figure out how we’re gonna pay our mortgage and get insurance again. That’s been the biggest thing. We’ve taken a huge hit and we’re just trying to pick up the pieces right now.”
Johnson works part-time at Cream of the Crop, a local consignment shop, and said her boss plans to give her full-time hours soon.
“I’m gonna get emotional. I’m very happy for that,” she said. “So, hopefully everything will work out.”
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Lucid was expected to be a major economic driver for Casa Grande, but some said the repeated layoffs have hurt morale and created uncertainty for families and small businesses.
“I knew some people that were bartenders and had gotten jobs and were super excited — only to be let go shortly after,” Hill said.
“Now it looks like it’s gonna be a black eye to the community,” Delsi said.
Johnson said the ripple effects will extend beyond the plant.
“We’re not the only ones affected by it,” she said. “It will impact businesses. It will impact the entire community.”
We announced actions to strengthen Lucid’s operations, including a reduction of our US-based hourly and salaried workforce of 18%. These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions. They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time.
We are grateful for the contributions of impacted employees and are providing severance, benefits, and support to assist them through this transition.
Our commitment to Arizona, and the Casa Grande community, are important to our success and have not changed. We continue to invest in our presence here and see opportunities for further growth in the years ahead.
Additionally, Marc Winterhoff, Chief Operating Officer, has departed the Company effective immediately following the elimination of the COO role. We thank Marc for his contributions during a critical period of transition and wish him well.
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