On Wednesday afternoon, more than a dozen employees started sharing updates regarding layoffs at the company via LinkedIn. A representative subsequently verified the terminations.
According to Rivian’s Corporate Communications Sr. Manager Felker, it was a component of Rivian’s ongoing efforts to reorganize in order to better suit its corporate objectives.
“To support our goal of being gross margin positive by the end of the year, this was a difficult but necessary decision,” Felker stated.
What percent of employees did Rivian lay off?
Rivian laid off about 1% of its employees. This occurred just two months after the corporation had let off ten percent of its workforce due to a decline in the market for its cars and other electronic vehicles in general as well as a lower-than-anticipated production estimate for 2024.
When Fast Company asked Rivian for comment on the reports, the company did not respond right away.
What is the reason of Lay off?
When Rivian released its fourth quarter 2023 profits in February, that’s when its problems began. At the same time that it announced the layoffs, the business informed investors that it had lost $1.5 billion during that three-month period.
It was difficult to pinpoint the precise number of persons impacted on either Wednesday or at the time because it employed 16,700 workers at the time, but it was unclear how many of those were considered salaried.