Rivian Automotive to Lay Off Over 120 Employees in California

Rivian Automotive Inc. once heralded as a frontrunner in the electric vehicle (EV) market, has notified California state officials of its plans to execute another round of layoffs. 

According to an April 24 letter to the state’s Employment Development Department from Scott Griffin, Rivian’s Vice President of People, the company will cut over 120 jobs, with 89 positions in Irvine and 28 in Palo Alto being affected.

Timing and Scope of Layoffs:

These job cuts are slated to commence in June and are expected to be permanent. This follows a significant reduction in February, where Rivian announced a 10% workforce cut, significantly impacting its stock value. 

At its peak post-IPO in 2021, Rivian was valued at nearly $88 billion, but its market capitalization has since fallen to approximately $11 billion as of Monday.

Company’s Statement and Financial Goals:

A Rivian spokesperson commented on the layoffs, indicating that the company is continuing efforts to align its workforce with business priorities. “We continue to work to right-size the business and ensure alignment to our priorities,” the spokesperson said. 

The recent changes, affecting about 1% of Rivian’s workforce, are part of a broader strategy to achieve positive awful margins by the end of the year.

Broader Market Context:

Rivian’s latest restructuring move reflects broader challenges within the EV sector, which has seen declining demand as wealthier consumers have already purchased EVs and broader consumer market adoption remains tepid. 

Reuters recently reported that Rivian had approximately 16,790 employees across North America and Europe as of December 31.

Strategic Adjustments and Future Outlook:

These layoffs are part of Rivian’s ongoing strategic adjustments to optimize operations and manage financial performance. 

As the company navigates these challenges, it aims to stabilize its market position and meet its financial targets amidst a shifting landscape for electric vehicles.