NORMAL — Rivian Automotive is planning hundreds of layoffs, Bloomberg first reported Monday, citing unnamed “people familiar with the matter.”
It was not immediately clear whether positions at the company’s Normal operations would be affected. Miranda Jimenez, corporate communications at Rivian said, “We don’t have anything to add at this time.”
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The rumored cuts are expected to focus on non-manufacturing roles, Bloomberg said, and could affect 5% of the company’s 14,000 employees, or 700 people. Bloomberg’s sources said that the layoffs could be announced within the next few weeks.
The electric vehicle manufacturer has its headquarters in California. It manufactures vehicles at its plant on the west side of Normal, which it purchased in 2017. As of last month, it employed more than 5,800 people at the plant.
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Rivian has also been planning expansions to the plant. The projects include additions to the plant space as well as a wind turbine.
Rivian has also planned a manufacturing plant in Georgia, where it is getting $ 1.5 billion in state and local government aid.
The company launched its IPO in November. However, shares have dropped after an initial spike that peaked at more than $ 170 a share. Shares were at $ 31.99 at market close on Friday.
Production has also been lower than initially anticipated, an issue that company officials have attributed to supply chain problems.
Rivian is not alone in cuts in the electric vehicle space right now, Bloomberg reported. Tesla is also planning layoffs of salaried staff.
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Contact Connor Wood at (309) 820-3240. Follow Connor on Twitter: @connorkwood
Contact D. Jack Alkire at (309) 820-3275.