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Electric car maker Rivian plans hundreds of layoffs following a surge in staffing
https://www.whatjobs.com/news/employment-news/electric-car-maker-rivian-plans-hundreds-of-layoffs-following-a-surge-in-staffing
By Nithya Bose in Employment News, posted July 12, 2022
Rivian is considering hundreds of layoffs in locations where the electric car manufacturer has developed too swiftly.
The reductions will target non-manufacturing positions, such as teams with identical duties, and the moves may be disclosed in the following weeks, according to people close to the situation.
The Irvine firm, which employs over 14,000 people, might aim for an overall trimming of around 5 percent.
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The layoffs are still being planned, and nothing has been determined.
Rivian operates in California, Michigan, and Illinois, where its facility is located, as well as in Britain and Canada.
However, Rivian didn’t immediately respond to the requests for comments.
The electric-vehicle maker is prepared to join firms in corporate America in scaling back on operations as fears of an economic crisis intensify.
Tesla downsized 10 percent of its paid workers while keeping manufacturing employment after CEO Elon Musk said that a recession is unavoidable.
Rivian is curtailing after almost doubling its personnel in the previous year to enable a production ramp-up.
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The firm, which manufactures electric trucks and SUVs as well as delivery vans, had one of the largest-ever US initial public offerings in November, establishing itself as a prominent contender to market leader Tesla.
Rivian has struggled as a result of global supply-chain disruptions and component shortages.
Automakers are now facing greater challenges as vehicle sales, particularly those of EVs, slow due to customer aversion to high sticker prices.
Rivian's shares dropped almost 69 percent this year as of Friday's closing on July 8.
Rivian had about $17 billion in cash and restricted cash on its balance sheet as of the end of March to better weather the storm.
Amazon and Ford are among the investors backing the budding EV manufacturer.
Rivian has agreed to construct 100,000 battery-electric delivery vans for Amazon by the end of the decade.
Source: Los Angeles Times
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