Rivian plans to cut hundreds of jobs

Electric carmaker Rivian Automotive plans to cut hundreds of jobs, or about 5 percent of its workforce, a person familiar with the matter said on July 11 .Shares in the company fell 6.6% to $29.87 in afternoon trade following the news.

Rivian's previous regulatory filings show that as of December 31, 2021, the company employed more than 10,000 people worldwide.The latest layoffs will focus on non-production departments, including some teams with duplication of functions, following a previous surge in the company’s workforce, the report said.

The report also said that the layoffs are still in the planning stage, and the company has not made a final decision.Rivian declined to comment on the news.

Image credit: Rivian

Rivian said last week that it delivered more than 4,400 vehicles in the second quarter, nearly tripling from the previous quarter, putting the company on track to meet its goal of producing 25,000 vehicles by 2022."In the second half of the year, Rivian will need to operate at higher utilization rates to meet its guidance for the year," said CFRA Research analyst Garrett Nelson.

Rivian owns a factory in Normal, Illinois, where the company makes the R1S SUV, R1T pickup and electric delivery van developed for Amazon, which owns 18% of Rivian.The Normoll plant currently has an annualproduction capacity of150,000 vehicles, and the company previously said the plant will have an annual capacity of 200,000 vehicles by 2023.

Rivian expects demand for its electric vehicles to continue to grow, as the company also plans to open a second factory in Atlanta, Georgia, in 2025.