By Michael Elkins
Bloomberg reported Monday afternoon that electric vehicle maker, Rivian (NASDAQ:RIVN) is planning layoffs that could trim its workforce by about 5%. The report cites people familiar with the matter. Layoffs numbering in the hundreds could be announced in the coming weeks.
Rivian has added thousands of new employees over the last year as it began production of its own electric trucks and SUVs as well as a delivery van for Amazon (NASDAQ:AMZN). The California-based company currently has about 14,000 employees.
Shares in the company soared along with investor interest after the company went public late last year. However, as supply chain issues persist around the world, Rivian has struggled in its efforts to ramp up production. Share prices have since fallen over 80%.
The cuts are still in the planning stage and will focus on nonmanufacturing roles, including teams with duplicate functions, said the people, who asked not to be identified.
If these layoffs go forward, Rivian will join companies across America trimming operations. Tesla (NASDAQ:TSLA) is cutting 10% of its salaried workforce, while protecting manufacturing jobs, after Chief Executive Officer Elon Musk said he sees a recession as inevitable.
Rivian’s shares were down about 7% in mid-afternoon trading following the news.