Earlier this week, Rivian announced plans to lay off 1% of its workforce. The electric vehicle (EV) car maker explained that the second round of job cuts will reduce costs during a slowdown in EV demand. “This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year,” Rivian told Reuters in an email.
The upcoming Rivian layoffs will be the second time the company has cut jobs this year. The company also laid off workers last year. Rivian isn’t the only company cutting jobs.
Multiple car companies have mentioned a slowdown in EV demand and are considering hybrid production. Some analysts believe the future of the EV market lies in more affordable and reliable electric vehicles. Automakers are starting to develop smaller SUVs and expand EV charging infrastructure to address consumer concerns and needs.
They have also focused on reducing costs.