02/22/2024

Rivian Cuts Jobs

The automaker sees annual production below estimates

Rivian said on Wednesday it would cut its workforce by 10 percent and forecast EV production this year that widely missed estimates, hurt by downtime for factory upgrades and slowing demand for electric vehicles due to high interest rates.

Shares of the company tumbled about 17 percent in extended trading after Rivian said it expects to produce 57,000 vehicles in 2024, well below estimates of 81,700 units, according to eight analysts polled by Visible Alpha. It produced 57,232 vehicles last year.

"We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions," CEO RJ Scaringe said in a statement on Wednesday.

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