Electric vehicle maker Rivian is jumping on the bandwagon of layoffs across the tech and car industries. According to Bloomberg, the company is plotting a restructure in upcoming weeks that will see at least 5% of its 14,000 employees being laid off. The decision comes after Rivian doubled the number of workers in the past year.
Reportedly, the layoffs were mentioned in an internal email sent out by Rivian’s CEO, RJ Scaringe. In the email, Scaringe reiterated the need to “stay ahead of the changing economic landscape” with hiring freezes and trimming the workforce being among the ways to do it.
“Our team is the core of Rivian and we are working to be as thoughtful as possible as we consider any reductions,” Scaringe added.
Bloomberg reports that the layoffs will take place in the next couple of weeks. Around 700 employees who will lose their jobs belong to the non-manufacturing part of Rivian’s business. They are mainly working in areas where the company believes it “expanded too quickly.”
After the report came out, Rivian stock lost seven percent of its value in extended trading. However, the shares bounced back on Wednesday, closing in at $30.55 per share. This is still 70% less compared to the start of 2022.
