Rivian, the electric-truck maker backed by Amazon, has recently announced that it will lay off 92 employees in Orange County, primarily at its Irvine headquarters. This move comes as a follow-up to their previous round of layoffs in February, where they had announced a reduction in their salaried workforce by 10 percent and a decrease in vehicle production for 2024.
The news of these layoffs has had a significant impact on Rivian’s stock price. In just two days after the February announcement, the company’s shares plummeted by $5. As of May 14, Rivian’s shares were valued at $11.19, a sharp decline from November 2021 when they were selling for nearly $130. These numbers reflect the challenges faced by Rivian and other electric car manufacturers in the market.
In a letter sent to California’s Employment Development Department, Scott Griffin, Rivian’s vice president of people, stated that the layoffs would occur in three cities in Orange County, as well as in Palo Alto and San Francisco. The majority of the cuts, 89 employees, will be at Rivian’s Irvine headquarters, with the remaining positions affected in Costa Mesa and Tustin.
The layoffs are expected to be permanent and will commence around June 18. However, it is important to note that these job cuts do not indicate a complete closure of any of the facilities. While this news may be concerning, it is not exclusive to Rivian. Tesla, the market leader in the electric vehicle industry, also announced in April that it would be laying off 10 percent of its global workforce.
Rivian’s disappointing first-quarter results have contributed to this decision. The company reported a loss of $1.4 billion, an increase from $1.3 billion the previous year. These financial struggles mirror the broader challenges faced by electric car manufacturers as they attempt to expand their consumer base beyond early EV enthusiasts.
Earlier this year, Rivian had already laid off 240 workers in Palo Alto and approximately 150 in the Bay Area. In April 2023, 239 employees in Orange County were also let go. However, it is worth noting that the most recent round of cuts will impact only 1 percent of Rivian’s overall workforce.
According to a spokesperson from Rivian, these layoffs are part of ongoing efforts to “right-size the business and ensure alignment to our priorities.” The affected departments include customer support, logistics, purchase operations, vehicle delivery, and human resources. The letter specifically mentioned positions such as directors of talent acquisition and product research analytics in Irvine, as well as a recruiter in San Francisco, and directors and managers in Palo Alto.
In conclusion, Rivian’s decision to lay off 92 employees in Orange County is a reflection of the challenges faced by electric car manufacturers in the market. These job cuts, while significant for the individuals affected, are part of the company’s efforts to streamline their operations and focus on their core objectives. As the industry continues to evolve, it is crucial for companies like Rivian to adapt and find their place in an increasingly competitive market.
