Rivian to lay off 1% of current workforce

Rivian Automotive Inc. will cut another 1% of its workforce, the second round of layoffs this year as the electric vehicle industry grapples with flagging consumer demand.

“We continue to work to right-size the business and ensure alignment to our priorities,” the company said in an emailed statement. “This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.”

The move comes about two months after Rivian cut 10% of its salaried staff as high interest rates and economic headwinds compounded the company’s ongoing challenges with scaling production. The prior round of cuts focused on product teams and those working on its commercial electric vehicle business, while the latest move will mostly affect support and backoffice workers.

Rivian had 16,790 employees as of Dec. 31, suggesting the latest cuts could amount to 150 or more jobs.

Electric vehicle market leader Tesla Inc. said this week it would reduce its global headcount by more than 10%, underscoring the deep strains running through the market for plug-in vehicles. Consumer enthusiasm has waned amid high prices for many electric vehicles and spotty charging infrastructure.