U.S.-based EV-maker Rivian said it plans to lay off 10% of its workforce as concerns over slower electric vehicle sales continue to challenge companies across the industry. Additionally, the company in its fourth-quarter earnings reports said that it will not be making any more vehicles this year than it did in 2023.
Rivian made 57,232 vehicles in 2023, of which 50,122 were delivered to customers.
The announcement is expected to impact thousands of workers at the company’s Irvine plant which employs a combined strength of 16,700 salaried and hourly employees.
Rivian had earlier announced layoffs in 2022, and 2023. On both occasions, the company laid off 6% of its then workforce.
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The EV industry is facing a dip in sales with Tesla registering a drop of 10% in the number of vehicles registered in California, one of the most important markets for the electric carmaker.
American electric carmakers are facing heat from global rivals, including Chinese automakers. Earlier in January, Tesla CEO Elon Musk said Chinese automakers would “demolish” global rivals without trade barriers. The statement came after Warren Buffett-backed BYD - with its cheaper models and a more varied lineup -overtook Tesla as the world’s top-selling EV company last quarter, despite Tesla’s deep price cuts through 2023.
