Rivian Automotive Inc. is planning lots of of layoffs to trim its workforce in areas the place the electric-vehicle maker has grown too rapidly, individuals acquainted with the matter informed Bloomberg.
The cuts will give attention to nonmanufacturing roles, together with groups with duplicate capabilities, stated the individuals, who requested to not be recognized discussing non-public data. The actions may very well be introduced within the coming weeks, the individuals stated.
The firm, which has greater than 14,000 staff, might goal an total discount of round 5 %, the individuals stated. The layoffs are nonetheless within the strategy planning stage and nothing has been determined. Rivian has operations in California, Michigan and Illinois, the place its plant operates, in addition to a presence within the UK and Canada.
Rivian didn’t instantly remark.
The firm is pulling again after roughly doubling its headcount over the previous yr to help a ramp-up in manufacturing. Rivian, which makes electrical pickups and SUVs along with supply vans, notched one of many biggest-ever US preliminary public choices in November because it emerged as a number one challenger to market chief Tesla Inc.
Rivian has stumbled because it grappled with world supply-chain breakdowns and elements shortages. Automakers now face broader hurdles as automobile gross sales, together with these of EVs, soften with shoppers delay by excessive sticker costs.
Rivian’s shares tumbled about 69 % this yr by Friday’s shut.
The Irvine, Calif.-based producer is poised to affix corporations throughout company America pruning their operations amid rising worries about an financial downturn. Tesla is slicing 10 % of its salaried workforce, whereas defending manufacturing jobs, after CEO Elon Musk stated he sees a recession as inevitable.
As of the top of March, Rivian had nearly $17 billion in money and restricted money on its steadiness sheet to assist climate the storm. The fledgling EV maker is backed by traders together with Amazon.com Inc. and Ford Motor Co. Rivian has a contract with Amazon to construct 100,000 battery-electric supply vans by the top of the last decade.