“EV Maker Rivian to Cut Salaried Workforce by 10%”
This article discusses how Rivian, an electric vehicle maker, will cut ten percent of its salaried workforce. The company cites that vehicle output will be flat this year, citing tougher market conditions for its electric trucks. “Rivian Chief Executive RJ Scaringe said “challenging macroeconomic conditions,” including higher interest rates that make monthly vehicle payments pricier, were behind the weaker manufacturing outlook.” Moreover, electric car makers have been dialing back their investment plans for electric vehicles, citing deceleration in the growth of sales and waning consumer interest. Companies such as Ford and General Motors have also delayed or downsized their plans for battery factories. Lucid Group, an electric vehicle maker, said it will boost output to 9000 this year compared to 8500 last year with plans to build more if consumers demanded them. Although buyers are still enthusiastic about electric vehicles, they complain about charging inconveniences and high prices. Overall, U.S. electric vehicle sales rose 47 percent last year, down from about 70 percent growth in the previous year.
I have seen Rivian trucks on the road before and I know some of the features they offer as a car product. They are incredibley powerful and have some of the highest stats when compared to the Ford Raptor. I do feel this is the correct move however, especially if estimates show low return rate. Electric cars are still newer to the market and it will take time for them to take a true foothold. Many companies have already promised to reduce carbon emissions by using electric cars and make the switch.
ReplyDeleteI feel like a few years ago I was constantly bombarded with people talking highly of electric cars and now even just this past month I have heard negative feedback from people. It is funny how the public opinion turns and is clearly reflected by investment plans.
ReplyDeleteI wonder if there were more incentives from the government for people to switch to electric vehicles that demand for such cars would reignite. There is so much evidence that emissions from gasoline-powered vehicles are quite harmful to the environment. While protecting the environment is important to many people, if it means they must pay more, most people will continue with their past ways. Perhaps the government could offer better tax incentives to both the companies and consumers of electric cars to lower costs and help protect the environment.
ReplyDeleteIt is interesting to think how market conditions, including factors like higher interest rates, impact electric vehicle manufacturers like Rivian and what strategies they are employing to address these challenges while maintaining consumer interest and sales growth.
ReplyDeleteWhile it's surprising to see the huge layoff of their workers, this isn't the first time I read about it. The article I chose for my blog actually speaks about the tech companies and how specifically Cisco was planning to layoff 4k+ workers. I think layoffs are on a rise across all industries right now and that many companies are cutting back on labor to restructure and reinvest back into their business. While I definitely see this affecting the unemployment rate, I'm curious to see how each industry is cutting back on its labor.
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