EV Maker Announcing Another Drop in Employees

Tada Images / shutterstock.com
Tada Images / shutterstock.com

As the predicted waves of going green have turned out to be little more than ripples on the surface, electric vehicle (EV) manufacturers have been forced to make cuts. Now, Rivian is announcing a second wave of layoffs in 2024 alone. Adding up to only 1% of their total workforce, this isn’t much of the 10% cuts they announced in February. Responding to their 2024 production forecast, they have had to contend with cooler EV sales than anticipated.

Speaking with the Daily Caller, Rivian said “We continue to work to right-size the business and ensure alignment to our priorities. As a follow-up to some of the changes we made to teams in February, today, we shared some additional changes to groups supporting the business. Around 1% of our workforce was affected by this change. This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.”

In 2022 and 2023, the company shed 6% a year and ended 2023 with roughly 17,000 employees in North America and Europe.

Not alone in this announcement, Tesla was also joining them by eliminating 10% of their 140,473 employees by the end of the year. Stellantis knew about their cuts earlier and announced 400 positions would be trimmed back in March. Given how EV makers have failed to reach their expectations, it’s no surprise traditional automakers are cutting back on their EV programs.

Bentley, GM, Ford, Mercedes-Benz, and even Honda have all but eliminated EV growth. The only major automaker to not suffer big EV problems has been Toyota, then again they instead embraced the hybrid model, and made it a bit pricier to go EV, thus covering their costs. Companies like Tesla, Rivian, and Stellantis need to pray that EVs get significantly better and people decide they are willing to trust them, or they will eventually fold.