Rivian Is Laying Off About 6% Of Its Total Workforce

Electric vehicle maker Rivian is laying off approximately 6% of its total workforce, or about 800 people as the company looks to ramp up production of new EV models. Earlier reports indicated that other car manufacturers have also been planning job cuts.

In a confirmation email to The Verge, Rivian spokesperson Amy Mast said the layoff announcement was made Wednesday. “Today we announced the difficult decision to reduce the size of the Rivian team by approximately 6%,” Mast said in the email. She added that the company made the decision to “help align our workforce to our key business priorities, including ramping up the consumer and commercial vehicle programs, accelerating the development of R2 and other future models, deploying our go-to-market programs and optimizing spend across the business.”

Bloomberg reported earlier this month that Rivian was planning to cut jobs in units that grew too fast. People with knowledge of the situation told the outlet that the layoffs will be focused on non-manufacturing positions. It is unclear which particular offices or factories will be affected by the job cuts as the EV maker has operations in Illinois, California and Michigan.

Rivian doubled its workforce over the past year as it worked to ramp up production. However, the company recently struggled with issues related to supply chains including shortages in vehicle parts.

News of Rivian’s layoffs came about a week after Bloomberg reported that Ford Motor Co. was preparing to layoff as many as 8,000 people in the coming weeks. In economic development documents reviewed by The Detroit Free Press, it was indicated that Ford may opt to lay off thousands of salaried workers as part of its efforts to fund an investment deal. The company is also looking to reduce up to $3 billion in operational costs within the next four years.

Late last month, multiple outlets reported that Tesla closed its office in San Mateo, California. The EV giant also cut roughly 200 jobs on its Autopilot driver-assistant system. Earlier in June, Tesla CEO Elon Musk reportedly emailed executives, informing them of the need to cuts the total workforce by about 10%.

The logo for electric vehicle company Rivian is seen on the hood of its R1T all-electric truck in Mill Valley, California, U.S., January 25, 2020. Photo: Reuters / NATHAN FRANDINO