Rivian lays off workforce for the second time in 2024

Earlier this week, Rivian announced plans to lay off 1% of its workforce. The electric vehicle (EV) car maker explained that the second round of job cuts will reduce costs during a slowdown in EV demand.

“This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year,” Rivian told Reuters in an email. 

The upcoming Rivian layoffs will be the second time the company has cut jobs this year. In February, Rivian laid off 10% of its salaried workers, explaining that it was optimizing cost efficiencies. 

The company also laid off workers last year. In February 2023, Rivian laid off 6% of its workforce after pressure from EV rivals who significantly cut prices. Later that same year, in December, Rivian laid off 20 battery cell development workers.

Rivian isn’t the only company cutting jobs. Tesla and Stellantis are actively laying off workers as well. 

Multiple car companies have mentioned a slowdown in EV demand and are considering hybrid production. Ford, General Motors, and Hyundai are a few automakers considering hybrid production in the United States.

Some analysts believe the future of the EV market lies in more affordable and reliable electric vehicles. Automakers are starting to develop smaller SUVs and expand EV charging infrastructure to address consumer concerns and needs

They have also focused on reducing costs. Last month, Rivian announced it would shut down its factory in Normal, Illinois, in April to retool its production line.

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