SAN FRANCISCO (Reuters) -Electric vehicle maker Rivian said on Wednesday it cut about 1% of its workforce – the second round of job cut this year – as it reduces cost amid a broader slowdown in EV demand.
Shares of Rivian pared gains after the news and were last up 1.3% in late afternoon trading.
“This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year,” the maker of R1S SUVs and R1T pickup trucks said in an email to Reuters.
The move follows a 10% layoff at Rivian in February when the company disappointed investors with a lower-than-expected 2024 production forecast.
Reducing cost is crucial for Rivian as high interest rates to rein in inflation have hurt consumer demand for EVs that are typically more expensive than their gas-powered counterparts.
Rivian has also reduced costs by building some parts in house and re-negotiating supply contracts. It has also shut down its production line for an upgrade to increase efficiency and help reduce cost.
(Reporting by Abhirup Roy in San Francisco and Akash Sriram in Bengaluru; Editing by Franklin Paul and Lisa Shumaker)
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