Electric vehicle startup Rivian Automotive Inc RIVN reportedly aims to lay off several hundred workers to undo a recent hiring surge and reduce redundancy of roles.
What Happened: According to a Bloomberg report on Monday, Rivian's planned job cuts are focused on nonmanufacturing roles, including teams with duplicate functions, according to people familiar with the matter.
Rivian did not immediately respond to Benzinga's request for comment on the report.
The Irvine, California-based company has over 14,000 employees and could be targeting a 5% reduction overall, according to the report.
An announcement could be made in the coming weeks, although no plans have been finalized, according to Bloomberg.
Why It Matters: Rivian's new roadmap for its workforce follows a surge in hiring over the past year, as it sought to boost output and challenge Tesla Inc's TSLA dominance, as per the report.
The news also places the EV maker alongside several major American corporations looking to downsize amid fears of a recession.
Tesla CEO Elon Musk last month said his company would impose a hiring freeze and slash 10% of its salaried workforce. Musk reportedly told his employees that he had "a super bad" feeling about the economy.
Rivian, backed by Amazon Inc AMZN and Ford Motor Co F, last week reported impressive production and delivery growth in the second quarter. It also said it was on track to deliver 25,000 EVs this year.
The company will report its second-quarter results on Aug. 11 after the market closes.
Price Action: Rivian shares slid over 6% to $29.93 on Monday, before losing 0.43% in after-hours trading, according to data from Benzinga Pro. The stock is down more than 70% this year.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.