Electric Vehicle Manufacturers Rivian laid off 6% of its employees, The Wall Street Journal reported in this week.
The layoffs total about 840 employees and come less than a year after Rivian went public in the biggest IPO of 2021.
“The world has changed dramatically over the past six months, with inflation hitting record highs, interest rates rising rapidly and commodity prices continuing to rise – all of which have contributed to the tightening of global capital markets,” wrote RJ Scaringe, CEO of Rivian, in one Email for employees, according to the WSJ.
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Rivian went public in November 2021 and raised $11.9 billion through its IPO, data from Crunchbase shows. The Plymouth, Michigan-based company was valued at $66.5 billion at the time of its IPO.
The company’s stock price is down about 68% year-to-date and had a market cap of about $29.6 billion as of Thursday. The company warned employees earlier this month that layoffs were imminent.
Growth stocks have been hit hard by the turmoil in public markets. More than 32,000 employees have been laid off by US tech companies so far this year, according to a tally by Crunchbase News. The tech industry and tech-related companies like those in electric vehicles and biotech appear to be bearing the brunt of the layoffs.
Rivian has also faced some manufacturing challenges since its IPO. In March, the company halved its production forecast to 25,000 vehicles, according to the WSJ, indicating a parts shortage.
Rivian isn’t the only electric vehicle company doing layoffs. Tesla also laid off some employees and closed an office in California after the CEO Elon Musk said he had a “super bad feeling” about the economy.
Figure: Dom Guzman
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