Rivian Automotive (RIVN.O), an electric vehicle manufacturer, is implementing another round of layoffs that will impact around 600 employees, or about 4% of its staff, in an effort to reduce expenses.
Rivian hired just under 15,000 employees as of the end of December 2024. The recent round of layoffs follows Rivian’s announcement last month that it had reduced its workforce by 15%. The layoffs will reportedly focus primarily on commercial positions in the sales and servicing divisions.
Rivian redefines strategy as profits remain elusive
The layoff report by WSJ claimed that Rivian Automotive is facing a declining EV market, high production costs, and fierce rivalry from Tesla, Ford, and an expanding number of Chinese rivals. The report noted that rival companies have made it difficult for the company to maintain steady profits.
According to the report, the layoffs show the challenges facing EV makers under U.S. President Donald Trump, whose policies threaten to erode already unstable demand in the U.S. The administration recently eliminated tax credits for EV purchases and has effectively nullified fuel economy and emissions standards, enticing companies to pivot to more profitable gasoline-powered vehicles.
In August, Rivian retracted a major financial target, stating that the company would break even on a gross profit basis this year, after previously projecting a tiny profit of about $300 million.
Financial data reveals that Rivian Automotive Inc. reported $1.3 billion in revenue for the second quarter, a 12.5% increase over the same period last year. For the same period, a net loss of $1.12 billion was reported, which was a 23.3% improvement over the prior year. Rivian Automotive achieved a 31.9% increase in efficiency over the previous year, despite a net profit margin of -85.7%.
Rivian Automotive has focused on increasing the efficiency of its Normal, Illinois, plant’s manufacturing while preparing for its next R2 models, which are expected to expand its market beyond the luxury segment in 2026.
AI reshapes jobs as tech giants downsize
On October 22, Cryptopolitan covered a story of Meta’s approximately 600 layoffs in its Superintelligence Labs AI company. According to an internal memo, the layoffs will affect teams working on FAIR, product AI, and AI infrastructure. The memo stated that the change is intended to increase the organization’s agility.
Meta Chief AI Officer Alexandr Wang explained in the memo that the layoffs will offer each employee “more scope and impact” by eliminating too bureaucratic duties from the organization. Meta said that the affected workers can apply for other open positions within the firm and expects most of them to find new internal employment.
On October 14, Goldman Sachs (GS.N) opened a new tab informing staff members of possible layoffs and a hiring freeze through the end of the year, as it seeks to utilize artificial intelligence to boost productivity. In a memo, Goldman Sachs referred to the program as “OneGS 3.0” and stated that the sales and client onboarding process, along with other crucial areas, including lending procedures, are among the priorities for its AI initiative.
On October 20, SHRM reported that Amazon is preparing to cut up to 15% of its human resources staff in other divisions as it strives to reduce expenses while making significant investments in artificial intelligence. The report stated that People eXperience and Technology, or PXT, a division of Amazon that handles hiring, HR technology, and core HR operations, is expected to be most impacted by the company’s impending round of layoffs.
The layoffs are part of Amazon CEO Andy Jassy’s efficiency strategy, following at least 27,000 corporate job losses in 2022–2023. Jassy emphasized that workers will be positioned for high-impact roles if they can adapt to AI and contribute to the development of internal AI capabilities. More widespread layoffs are anticipated as AI boosts productivity throughout the organization.
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Source: https://www.cryptopolitan.com/rivian-cuts-600-jobs-in-its-second-round/
