Rivian Shares Drop 15% Following Announcement of Workforce Reduction

On February 21, 2024, U.S. electric vehicle company Rivian announced that it would cut its salaried workforce by 10% and that this year’s production volume would be similar to last year’s, which was lower than previously expected. As a result, Rivian’s shares were down about 15% in after-hours trading.

Rivian cited economic and geopolitical uncertainty and pressure to reduce electric vehicle prices as the main reasons for the 10% workforce reduction. Although the company firmly believes in the complete electrification of the automotive industry, its business is facing a challenging macroeconomic environment, Rivian added.

According to Reuters, Rivian’s expected production number in 2024 will be about 57,000 units, similar to the previous year, significantly lower than the 81,700 units expected initially. Meanwhile, Rivian’s sales volume in 2023 was 5,012 units, double the number of the prior year.

Rivian cut 6% of its workforce in July 2022 and 6% in February 2023. This is the 3rd workforce reduction.

Founded 2009 in the U.S., Rivian has a lineup of electric pickups and SUVs and plans to unveil R2, a more affordable model, as its third model in early March.