Rivian Layoffs 2024: What You Should Know About the Latest Round of RIVN Job Cuts

Even after announcing another round of layoffs, Rivian Cars (NASDAQ:RIVN) stocks are rising today. In February 2024, the electric vehicle (EV) maker cut its salaried workforce by 10%. Yesterday, it announced retirement plans even more workers. This time, though, Rivian’s layoff is less significant. Only 1% of its jobs are being cut in an apparent attempt to cut costs as the EV market continues to struggle.

But this news does not affect the RIVN stock, which has been rising since the markets opened. If investors were worried about the latest round of job cuts, they may have no reason to be.

A Closer Look at Rivian’s Limitations

It is unwise to be alarmed by the news that Rivian is laying off more employees. The company has chosen three rounds of job cuts in the past year. However, it is important to note that the most recent round of layoffs at Rivian is so small that it should not be considered as part of an investment theory. One percent of its workforce is a small number and could be laid off as part of a restructuring plan that could help streamline operations. Like Reuters report:

“Cost reduction is important for Rivian as high interest rates to control inflation have affected consumer demand for EVs that are typically more expensive than their gas-powered counterparts.

Rivian has been cutting costs by building some parts in-house and renegotiating supply contracts. It has also closed its production line for improvements to increase efficiency and help reduce costs.

With a focus on growth through efficiency, it makes sense that Rivian would be taking steps to reduce its workforce. Working in today’s EV market is not easy. Competition is increasing, and demand remains tight. But RIVN shares have been on a winning streak for the past two days. While this momentum is somewhat likely due to the short-term tight forecast, it’s also possible that Rivian is finally starting a turnaround that’s worth it.

Rivian’s latest layoffs could help usher in a new era for the company. Some experts are still skeptical, given how much RIVN’s stock has fallen over the past few months. But the fact that shares are up today shows that Rivian’s job cuts didn’t have a negative impact.

At the date of publication, Samuel O’Brient did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, in accordance with InvestorPlace.com’s Publishing Guidelines.