Rivian Automotive Inc.. is planning tons of of layoffs to chop its workforce in areas the place the electric-vehicle maker has grown too rapidly, folks acquainted with the matter informed Bloomberg.
The cuts will concentrate on non-manufacturing roles, together with groups with duplicate capabilities, the folks stated, asking to not be recognized as a result of the data is personal. The shares may very well be introduced within the coming weeks, the folks stated.
The corporate, which has greater than 14,000 workers, might goal an general discount of about 5 p.c, the folks 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 in the UK and Canada.
Rivian did not instantly remark.
The corporate is pulling out after practically doubling its headcount over the previous 12 months to assist a rise in manufacturing. Rivian, which makes electrical vehicles and SUVs in addition to supply vans, pulled off one of many largest preliminary public choices in US historical past. tesla inc.
Rivian has stumbled coping with international provide chain failures and elements shortages. Automakers now face broader hurdles as automobile gross sales, together with these of electrical automobiles, decline and customers are delay by excessive sticker costs.
rivian shares it fell 69 p.c this 12 months by way of Friday’s shut.
The Irvine, California-based producer is about to hitch firms throughout the company American world in winding down operations amid rising issues about an financial downturn. Tesla is slicing 10 p.c of its salaried workforce, whereas defending manufacturing jobs, after CEO Elon Musk stated he sees a recession as inevitable.
On the finish of March, Rivian had practically $17 billion in money and restricted money on its steadiness sheet to assist climate the storm. The fledgling electrical automobile maker is backed by buyers 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.