After Tesla's Cost-Cutting, Rivian Trims Workforce Again This Year Amid Profitability Push
Portfolio Pulse from Anan Ashraf
Rivian Automotive (NASDAQ:RIVN) is cutting another 1% of its workforce, following Tesla's recent layoffs, as part of its efforts to achieve profitability by the end of the year. The cuts will likely affect support and back-office workers. Despite increasing vehicle deliveries, Rivian continues to face losses and aims for profitability by Q4 2024. Rivian's stock saw a slight increase on Wednesday but dropped in after-hours trading.
April 18, 2024 | 6:16 am
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Rivian is cutting 1% of its workforce to align with its profitability goals, despite increasing vehicle deliveries. The company aims to be gross margin positive by year-end but faces losses per vehicle.
The workforce reduction at Rivian, aimed at achieving profitability, indicates ongoing financial challenges. While the company is increasing vehicle deliveries, the continued losses per vehicle and the job cuts could negatively impact investor sentiment and stock price in the short term.
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