Trends

Rivian, the US electric car maker, is cutting 10 per cent of workforce

Rivian Automotive announces a 10% layoff, concerning over electric vehicle sales, attributing stagnant production to economic uncertainties.

AuthorBTW Editorial

Reading Time1 min

PublishedFebruary 22, 2024

Primary DomainN/A

Content TypeN/A

TopicN/A

EntityN/A

RegionN/A

Time HorizonN/A

ImpactN/A

ConfidenceN/A

Headline

Rivian Automotive announces a 10% layoff, concerning over electric vehicle sales, attributing stagnant production to economic uncertainties.

Context

American electric vehicle manufacturer Rivian Automotive announces a 10% workforce reduction due to industry-wide concerns over slowing EV sales. Rivian disclosed the layoffs alongside its Q4 earnings report, projecting no increase in production for the year compared to 2023, leading to a drop in stock prices.

Evidence

Pending intelligence enrichment.

Analysis

Having faced previous rounds of layoffs in July 2022 and May 2023, affecting 6% of its workforce each time, this round is expected to impact over 1,000 employees out of its total 16,700. While primarily affecting salaried employees and some hourly workers in non-manufacturing roles, Rivian declines to provide exact figures. Also read: Tesla is set to construct a new $25,000 EV model by mid-2025 With a 2024 production estimate of 57,000 vehicles, similar to 2023, Rivian’s forecast falls significantly below analysts’ average prediction of over 80,000, citing economic, geopolitical uncertainties, and pressure, especially from historically high interest rates, as reasons for stagnant production.

Key Points

Rivian Automotive announces a 10% reduction in its workforce amid industry concerns over declining electric vehicle sales, revealed alongside its Q4 earnings report.
This marks the third round of layoffs for Rivian, following similar actions in July 2022 and May 2023, with over 1,000 employees expected to be affected out of a total of 16,700.
Rivian attributes the stagnant production forecast for 2024, matching 2023 levels, to economic and geopolitical uncertainties, particularly the impact of historically high interest rates, and plans to launch a smaller, more affordable SUV, the R2, next month.