Rivian’s Rough Ride Lays Off 10% of Salaried Staff
Rivian sign logo at headquarters in Silicon Valley. Rivian is an American automaker and automotive technology company. - Palo Alto, California, USA - Michael Vi / Alamy Stock Photo
Rivian Automotive Inc. faced a significant stock drop of over 15% in late trading following a series of announcements that included job cuts, a larger-than-expected quarterly loss, and a stagnant production forecast for the year ahead amidst economic pressures. Despite a year-over-year revenue increase of 71%, Rivian reported an adjusted loss per share of $1.58 for the quarter ending Dec. 31, missing analyst expectations.
The company’s net loss totaled $1.521 billion for the quarter, with operating expenses rising to $975 million. Acknowledging the need for strategic changes amid economic challenges, Rivian’s CEO announced a 10% reduction in the workforce, affecting approximately 1,670 employees. With a forecasted production of 57,000 electric vehicles in 2024, lower than investor expectations, Rivian attributes this decision to economic and geopolitical uncertainties, particularly historically high-interest rates.
Despite the bleak outlook, Rivian aims to mitigate losses, projecting a $2.7 billion loss for 2024, potentially paving the way for future profitability.
