The Layoffs Continue: Rivian To Cut About 5% Of Its Workforce
Electric vehicle maker Rivian continues to feel the sting of both competition in the EV market and the overall broader deleveraging taking place as the economy tumbles into recession and hikes continue to inch higher.
It was reported this week that the company is planning on laying off about 700 of its employees in upcoming months, with the numbers reportedly unclear as to which locations and positions the layoffs would hit the hardest, per the Detroit Free Press.
It was reported Monday that the company would be trimming positions "in areas where it has grown too quickly" - which, judging by the stock performance of almost all EV manufacturers over the last year, has been everywhere.
The cuts could could be announced in the coming weeks officially, the report says. As of today, Rivian has about 14,000 employees, meaning the layoffs would represent a roughly 5% reduction in the company's workforce.
The Free Press noted that Rivian had recently "doubled its employee count in Plymouth in 2021 to more than 600". It is unclear if employees in Michigan will be affected. The company also has locations in California and Illinois, in addition to a facility in the U.K. and another in Vancouver.
Rivian's Michigan facility serves as "a vehicle development, prototyping and testing facility and administrative center".
Both Ford and Amazon have stakes in Rivian. A Rivian spokesperson did not comment.
Recall, we noted just days ago that layoffs in the U.S. continue to soar. Something snapped in the labor market last month, we noted, as Challenger's data showed US Job Cuts rose a stunning 58.8% YoY...