Rivian, the electric vehicle company focusing on developing SUVs and trucks, has announced another round of layoffs, this time cutting 10% of their workforce. This marks the third round of layoffs in the past three years, with the first in July 2022 cutting 6% and the second in February 2023 cutting another 6%.
In 2023, Rivian saw a significant increase in the production and delivery of electric vehicles compared to 2022. However, the company still reported a staggering $5.4 billion loss. Despite estimating a production of around 57,000 vehicles in 2024, similar to 2023, Rivian is forced to cut costs by closing their sole factory in Illinois to revamp their production line.
RJ Scaringe, the CEO of Rivian, stated that the company is facing challenges from economic issues such as rising interest rates and political uncertainties, prompting them to restructure the organization to navigate through these tough times.
TLDR: Rivian, an electric vehicle company, announces a 10% workforce reduction, the third round of layoffs in three years, amid increased production but substantial financial losses, prompting organizational restructuring.
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