Rivian Automotive Inc. plans to cut 10% of its salaried workforce and set production guidance well below expectations as electric vehicle maker deals with stagnant demand and economic turbulence.
The company expects to build some 57,000 vehicles this year, about what it did last year, according to a statement released Wednesday. The statement also detailed fourth-quarter results. According to a report from Bloomberg, the forecast fell far short of analysts’ average estimate of more than 80,000 units in 2024.
Rivian also said it expects an adjusted loss before interest, taxes, depreciation and amortization of $2.7 billion, guidance that was influenced by “economic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates,” according to Bloomberg.
The shares had dropped 17% to $12.78 after regular trading in New York. Rivian had already tumbled 34% this year through Wednesday’s close.
“We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” Chief Executive Officer RJ Scaringe said in the statement.
The layoffs follow job cuts the last two years. Capital expenditures this year will rise to more than $1.7 billion, Rivian said, up from a little over $1 billion in 2023.
According to the Bloomberg report, Rivian reported an adjusted loss last quarter of $1.36 a share, compared with an average $1.33 deficit in estimates compiled by Bloomberg. Revenue of $1.32 billion narrowly topped expectations.
