Published , by Donovan Erskine
Published , by Donovan Erskine
Rivian (RIVN) is one of the biggest names in the world of electric vehicles right now. With the company just recently reaffirming its plans to manufacture 25,000 EVs this year, things were looking rather well for Rivian. However, it’s not all good news if a recent report proves to be true. It’s been revealed that Rivian is looking to layoff 5 percent of its workers.
It was initially reported by Bloomberg that EV manufacturer Rivian (RIVN) would soon trim down its workforce, laying off roughly 5 percent of workers. Rivian employs 14,000 people, so hundreds of workers will be losing their jobs as a result of the layoffs. According to the Bloomberg report, the layoffs will specifically target non-manufacturing positions at the company. There are apparently concerns within Rivian that it may have grown too quickly in some places.
An official announcement of the layoffs could be coming within the next handful of weeks, according to Rivian. That said, the Bloomberg report was enough to get the stock moving south. Rivian (RIVN) stock fell 7 percent on the news of pending layoffs at the company. It was valued as high as $32.37 this morning, but fell as low as $29.57 prior to markets closing at 4 p.m. ET. It remains to be seen how it will perform in after-hours trading as the news spreads.
It was just recently that Rivian confirmed it would be manufacturing 25,000 electric vehicles by the end of the year, news that pleased shareholders and consumers alike. However, layoffs will soon come to the non-manufacturing areas of the company. For more on the future business moves of Rivian, as well as everything else in the world of EVs, stick with us here on Shacknews.