NORMAL, Ill. – Some workers at Rivian, including those at the electric vehicle plant in Normal, are receiving layoff notices.
According to Rivian, approximately one percent of Rivian’s employees company-wide will be cut. An estimated 15,000 people work for Rivian, which means the EV maker would be laying off about 150 workers.
25 News reports about 8,000 people work at Rivian’s factory in Normal. Rivian no longer releases information about the size of its local workforce.
“We have made the difficult decision to reduce a small number of our salaried manufacturing employees as part of an ongoing effort to improve operational efficiency for R2,” a Rivian spokesperson said. The R2 is Rivian’s second-generation EV, which is smaller and less expensive than R1 sport utility vehicles and pickup trucks.
The R2s will initially be built at the factory in Normal, which is being expanded. Eventually, Rivian will also be making EVs at a plant in Georgia.
Daniel Ives, managing director and senior equity analyst at Wedbush Securities, said while Rivian is cutting 1% company-wide, larger losses could be in store for Normal.
“This is an unfortunate part of the situation with Rivian adjusting to a slower demand trajectory,” Ives told 25News.
Rivian said the impacts do not impact hourly workers. Employees who are being laid off are eligible to be rehired and are encouraged to apply for other open positions, the company said.
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