Rivian (NASDAQ:RIVN) layoffs are coming to the electric vehicle (EV) company’s salaried staff as it looks to reduce jobs amid economic uncertainty.
During Rivian’s earnings report for the fourth quarter of 2023, the company noted it will reduce its salaried staff by 10%. The company attributes this to “geopolitical uncertainties and pressures,” with high interest rates being the main factor behind its decision.
The Rivian layoffs also come after the company provided EV production targets for 2024. It’s expecting to manufacture 57,000 vehicles this year, which is in line with its 2023 deliveries. However, it falls well short of Wall Street’s estimate for 80,000 EVs.
RJ Scaringe, founder and CEO of Rivian, said the following in the earnings report:
“We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions. We are aggressively focused on driving cost efficiency throughout the business, achieving positive margins and building our go-to-market function to support our long-term growth.”
Rivian Adds to Layoffs Trend
The first couple of months of 2024 have seen many companies cutting staff as they deal with economic headwinds. That includes ongoing concerns about increased inflation and interest rates. Many companies in the tech sector have been hit especially hard by this and have announced job cuts.
RIVN stock is down 21.3% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
