Following Tesla, Rivian Also Conducts Layoffs as US Electric Vehicle Industry Shrinks Workforce

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunjin Jeong] Following U.S. electric vehicle company Tesla, Rivian is also set to begin layoffs, Bloomberg News reported on the 11th (local time), citing multiple sources.

According to the report, Rivian plans to lay off hundreds of employees within weeks. Currently, Rivian operates factories in California, Michigan, and Illinois in the U.S., and also has employees in the UK and Canada. Rivian is said to have set a target to reduce its workforce by 5% out of its total 14,000 employees. Bloomberg noted that the plan is still in the planning stage and has not been finalized.

Bloomberg reported that Rivian doubled its workforce over the past year to increase electric vehicle production, and the layoffs are expected to focus on eliminating redundant functions in departments other than the electric vehicle manufacturing division.

Rivian has recently faced difficulties due to global supply chain disruptions and parts shortages. As of the 8th, Rivian’s stock price had fallen about 69% this year. As of the end of March, Rivian held approximately $17 billion (about 22.3 trillion KRW) in cash.

Prior to Rivian, Tesla laid off about 200 employees from its Autopilot division, which handles autonomous driving assistance features, last month to cut costs. Tesla CEO Elon Musk announced at the Qatar Economic Forum hosted by Bloomberg News on the 22nd of last month that the company plans to reduce its total workforce by 3.0 to 3.5% over the next three months.

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