Posted originally on the conservative tree house on July 12, 2022
Two things about this report showing Rivian is planning layoffs for its workforce.
First, the larger ‘layoff‘ issue is going to be more prevalent as the economy contracts and consumer demand declines. There is almost no expanded investment going into any Main Street business that sells non-essential goods.
The economic contraction, the drop in consumer demand that indicates a recession, is very real and now very easy to spot.
Second, Rivian is backed by the financing of Ford and Amazon and operates in California, Michigan and Illinois (three deep blue states). Rivian is also the supplier for Amazon electric delivery vehicles having previously announced (in 2019) a deal to purchase 100,000 vehicles from Rivian. Additionally, Rivian has lost 69% of its market value this year.
LA TIMES – Rivian Automotive Inc. is planning hundreds of layoffs to trim its workforce in areas where the electric-vehicle maker has grown too quickly, according to people familiar with the matter. […] The Irvine company, which has more than 14,000 employees, could target an overall reduction of around 5%, the people said. The layoffs are still in the planning stage, and nothing has been decided.
[…] The manufacturer is poised to join companies across corporate America pruning their operations amid growing worries about an economic downturn. Tesla is cutting 10% of its salaried workforce, while protecting manufacturing jobs, after Chief Executive Elon Musk said he sees a recession as inevitable. (read more)