After Tesla Cuts Costs, Rivian Cuts Again This Year Amid Profit Push – Rivian Cars (NASDAQ:RIVN)

EV manufacturer Rivian Cars RIVN is reportedly cutting another 1% of its workforce, just days after its biggest rival Tesla announced mass layoffs.

What has happened: While Rivian’s previous layoffs in February affected product teams and those working on the company’s commercial EVs, the latest round of layoffs will mostly affect its support and office staff, Bloomberg reported. informationciting an emailed company statement.

“We continue to work to resize the business and ensure it aligns with our priorities. This was a difficult decision, but necessary to support our goal of positive results by the end of the year,” Rivian said. report.

The EV startup had 16,790 employees as of Dec. 31, according to the report, which means the latest round of cuts could amount to at least 150 jobs.

Rivian did not immediately respond to Benzinga’s request for comment.

CEO of Tesla Elon Musk responded to the news on X, saying, “It’s inevitable.” It was unclear if Musk was referring to the drop in demand for EVs or his earlier prediction of Rivian preparing for bankruptcy due to their high costs.

Why It Matters: The February layoffs were part of the company’s cost-cutting efforts in light of high interest rates and economic and geographic uncertainty.

In the first quarter, Rivian delivered 13,588 vehicles compared to 7,946 vehicles delivered in the corresponding quarter of 2023 and produced 13,980 vehicles. For 2024, the company intends to produce 57,000 cars, the same as in 2023.

Despite the increase in sales, Rivian still hasn’t broken even. The company continues to make losses on every car it makes and expects to turn a profit by the fourth quarter of 2024.

Price Action: Shares of Rivian closed up 0.34% at $8.74 on Wednesday but were down 0.34% in after-hours trading, according to data from Benzinga Pro.

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Read more: No More Discounts on Tesla Cars as CEO Elon Musk Says Sales System Has Become ‘Complicated and Inefficient’

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