US electric vehicle maker RIvian plans to cut 5 percent of its workforce because it is seen as growing too fast in some areas, Bloomberg reported on Monday.
Bloomberg cited people familiar with the matter and said hundreds of layoffs could be announced in the coming weeks. But layoffs are still in the planning stages and no final decision has been made, the report said.
In total, the California-based electric vehicle manufacturer has about 14,000 employees. If the report is confirmed, it means that around 700 employees will experience layoffs.
Rivian shares were down about 7% in afternoon trading after the Bloomberg report.
Since the IPO at the end of last year, Rivian has added thousands of employees to start production of two of their electric vehicles, the R1S and R1T.
In addition, Rivian also has to fulfill orders for delivery vans from Amazon, which is one of the dominant shareholders.
Since the IPO at the end of last year, Rivian’s shares have fallen by up to 80 percent due to difficulties in increasing production amid global supply chain disruptions. Rivian itself has cut its annual production target due to supply chain problems.
Earlier this month, Rivian announced the number of their electric vehicle production in the second quarter of this year. Rivian produced 4,401 vehicles at its manufacturing facility in Normal, Illinois and delivered 4,467 vehicles during the same period.
A spokesman for Rivian declined to comment on the report.
