Rivian, the well-known electric vehicle manufacturer, is once again reducing its workforce by hundreds. This comes at a time when the electric vehicle market, including key players like Tesla, is facing significant challenges due to stagnant demand and economic instability.
This drastic measure by Rivian signifies a recurring trend in the electric vehicle market where major players are compelled to reduce their workforce. Recently, Polestar has also announced that it would be reducing its workforce by 15 percent. This would result in approximately 450 employees having to leave the company.
At Rivian, the reduction is expected to impact about a tenth of its jobs. As of now, the exact number of employees who would be affected by this decision is not clear. Based on figures from the previous year, the American company had around 14,000 employees. However, even last year and in 2022, Rivian had announced major restructuring measures in an attempt to save costs.
Despite these challenges, Rivian expects to manufacture approximately 57,000 vehicles in the current year. While this figure is in line with the production numbers for 2023 as stated by the company, it lags far behind the average analyst estimates. Market analysts had predicted the production of more than 80,000 cars by 2024.
