Reported by Carscoops on Friday (4/19/2024), Rivian will lay off 1% of its total current workforce. It is estimated that the number of employees no longer working at Rivian will reach 1,000 people.
Previously, Tesla laid off employees with an impact on 14,000 people. The massive layoffs by American electric vehicle companies are believed to be due to weakening sales and the increasing dominance of Chinese-made electric vehicles flooding the market.
According to Carscoops, Chinese-made electric vehicles are sold at a lower price compared to electric vehicles from the United States such as Tesla and Rivian.
However, many American electric vehicle companies are taking a diplomatic stance on the situation. This includes the decision to lay off employees.
“This decision is difficult, but necessary to support our goal of positive growth by the end of the year,” Rivian’s official statement regarding the layoffs said.
Currently, Rivian is not as large as Tesla. However, they are still very productive in providing electric vehicles for the American market.
They now have three new electric vehicles: R2, R3, and R3X. Previously, they already had two electric vehicles that have been circulating in the market for a long time, namely R1T and R1S.
Unfortunately, their business performance is not like Tesla’s. Sales are still relatively low, which ultimately impacts Rivian’s stock prices. The presence of Chinese-made electric vehicles further worsens the situation for the Irvine, California-based company, United States.
