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Former Ford EV Partner Rivian Cuts More Jobs As Demand Wanes

With consumer debt hitting eye-opening levels amid inflation that continues to grow, demand for all-electric vehicles has also lingered behind expected levels for months now. As such, Ford recently scaled back around $12 billion in planned EV investments, and is delaying the launch of larger, pricier models as it instead will focus on developing smaller, cheaper ones. However, things are a bit tougher for EV-only automakers that can’t fall back on ICE and hybrid models, and that list includes both Tesla and Rivian, each of which have been shedding jobs as a way to make up for declining sales. Now, Rivian is set to cut even more jobs, according to Bloomberg.

Rivian R2 - Exterior 003 - Side

After slashing around 10 percent of its salaried staff roughly two months ago, Rivian will now reduce its global workforce by around one percent, with these cuts coming from support and back-office workers, reportedly. It’s unclear how many positions will be trimmed, exactly, but the company employed around 16,790 people at the end of 2023, which would equate to around 150 or so job cuts in this latest round.

“We continue to work to right-size the business and ensure alignment to our priorities,” Rivian said in an emailed statement. “This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.”

In its previous job reductions, Rivian noted that high interest rates and economic headwinds were compounding existing issues in terms of ramping up production, which – coupled with declining demand – is having a tremendous impact on EV-only automakers as of late, specifically. In the meantime, Rivian is also working to launch its new R2 and R3 crossovers, which will deliver price tags that are significantly less than the existing R1T and R1S.

We’ll have more on Rivian soon, so be sure and subscribe to Ford Authority for more Rivian news and continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comment

  1. Dan

    The grassroots boycott against EVs is working perfectly. Nice to see repair shops, tire shops, and automotive online discussion forums all educate the public on the expense and downsides of EVs. Consumer Reports released a recent study where EVs are far less reliable than ICE cars. Great job everyone, keep up the boycott until they are depleted.

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