Shortly after reporting that it’d on track to meet its annual vehicle production goal, Irvine, California-based electric truck maker Rivian has now announced that it is planning to lay off hundreds of its employees.
According to Bloomberg, Rivian is looking to cut in areas where it feels it has grown too quickly. Employees in non-manufacturing roles and teams with duplicate functions are under the main scrutiny, with Rivian set to announce the layoffs in the coming weeks. Sources close to the matter have shared that the company could target a five percent reduction in workforce, which comes out to about 700 employees.
As the electric truck manufacturer ramped up production over the last year, it pretty much doubled its workforce in a likely unsustainable fashion. The company, which was once dubbed the ‘Tesla killer,’ has struggled with parts shortages and supply chain woes, impeding its efforts to ramp up manufacturing. While the company’s shares rallied up 20 percent last week upon news of it being on track to meet its annual vehicle production, the stock is still almost 84 percent down from its initial offering in November 2021.
Supply chain and production are ramping! We just announced production of 4,401 vehicles for Q2 bringing our cumulative total since start of production to 7,969 — keeping us on track to reach our year-end goals. Thank you to our team & suppliers.
— RJ Scaringe (@RJScaringe) July 6, 2022
This comes soon after Tesla CEO Elon Musk announced that the company would be cutting 3.5 percent of its workforce. Read more about it via the link below:
Source: Bloomberg
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