Rivian, the electric vehicle manufacturer, revealed plans to lay off 10 percent of its workforce as the industry faces challenges stemming from slower electric vehicle (EV) sales. The announcement came as part of the company’s fourth-quarter earnings report, which also indicated that Rivian might not produce more vehicles in 2024 than it did in 2023, leading to a drop in the company’s stock price.
This latest round of layoffs adds to Rivian’s history of workforce reductions, with previous cuts of 6 percent in July 2022 and May 2023. The current layoffs are expected to impact over a thousand employees at the Irvine, California-based company, which employs a total of 16,700 salaried and hourly workers.
According to a spokesperson, the layoffs will primarily affect salaried employees, along with a limited number of hourly non-manufacturing workers. However, specific numbers were not provided.
Rivian’s decision to downsize its workforce comes amidst a challenging macroeconomic environment marked by historically high interest rates and geopolitical uncertainties. CEO RJ Scaringe emphasized the need for strategic changes to ensure the company’s future success, citing the prioritization of growth areas such as the launch of Peregrine and R2 models, as well as investments in go-to-market capabilities.
Despite the layoffs, Rivian remains committed to its production goals, with plans to manufacture approximately 57,000 vehicles in 2024, a figure comparable to its output in the previous year. The company’s leadership aims to navigate through the current challenges while positioning Rivian for long-term growth and sustainability in the evolving EV market.
