Rivian is taking steps to address the challenges posed by slowing demand for electric vehicles. Following Fisker's recent setback, Rivian announced plans to cut its workforce by 1%, marking another round of layoffs within months of significant layoffs.
In February, Rivian said goodbye to 10% of its workforce as the impact of the slowing EV market became apparent. This comes after previous rounds of layoffs in February of the previous year (6 percent) and July 2022 (another 6 percent), Business Insider reports. In addition, the company parted ways with 20 people from its battery division in December.
Out of about 16,800 employees at the end of 2023, about 150 workers are expected to be affected by the latest round of layoffs. Rivian emphasized that these decisions are aimed at ensuring the company's alignment with its priorities and its goal of achieving a positive gross margin by the end of the year.
While previous layoffs have primarily affected Rivian's product development and commercial electric vehicle business, the current round is expected to primarily affect support and office positions. It's worth noting that Rivian isn't the only company facing the need to cut costs through workforce adjustments. Tesla recently announced a similar move, revealing plans to cut its workforce by 10%.