Rivian layoffs proceed as EV maker’s inventory slumps

After slashing its workforce in February when it laid off greater than 800 workers, electric vehicle maker Rivian is as soon as once more hoping to chop prices by shedding an extra 100 employees at its manufacturing unit in Regular, Illinois.

Amazon-backed Rivian introduced this week that it had laid off “about 100” employees at its manufacturing facility, which accounts for simply over one % of the workers at its website. The layoffs, first reported by Crain’s Chicago Business, come amid extensive cost-cutting measures for the EV maker because it tries to show a revenue on its $70,000 vehicles. Crain’s reviews:

Rivian mentioned Feb. 21 that it will eradicate 10% of its salaried jobs to chop prices and get to profitability extra shortly. The corporate misplaced $1.52 billion on $1.32 billion in income within the fourth quarter.

The corporate faces two challenges because it ramps up manufacturing to excessive sufficient volumes to earn a living. The corporate’s inventory is down and rates of interest are excessive, limiting its skill to soak up losses by elevating extra capital, forcing it to pay nearer consideration to prices.

Extra broadly, demand for EVs past early adopters isn’t proving as sturdy because the business anticipated, creating one other headwind.

The layoffs come because the R1T maker faces uncertainty in the EV market. To date this yr, the corporate’s inventory worth has tumbled to simply $11 per share, which is greater than seven occasions lower than its debut worth of $78 in November 2021.

Learn extra: Rivian’s 15th year is starting just as poorly as Tesla’s did

With layoffs sweeping the automaker and it projecting a fairly awful 2024, Rivian may have all its hopes on its newest mannequin turning issues round. The automaker will add a extra inexpensive electrical SUV to its vary within the coming weeks. The R2 is predicted to interrupt cowl later this week, however specs of the new car appeared online simply yesterday.

A version of this article originally appeared on Jalopnik’s The Morning Shift.