Following Tesla, Rivian has also initiated additional workforce reductions. Alphabet, Google's parent company, has likewise announced layoffs as part of cost-cutting measures.
According to major foreign media, U.S. electric vehicle company Rivian announced on the 17th (local time) that it has cut 1% of its workforce due to concerns over slowing electric vehicle demand. This marks the second workforce restructuring this year alone. Rivian stated, "It was a difficult decision," but confirmed that it was a necessary measure to achieve a positive gross profit target by the end of the year. Earlier, Rivian had implemented a 10% workforce reduction in February.
This is interpreted as a cost-cutting measure in response to slowing electric vehicle demand and poor sales performance. Rivian's stock price has plummeted more than 60% since the beginning of the year, and it recently adjusted some production lines. As concerns about a harsh downturn in the electric vehicle market grow, Tesla, considered a leading electric vehicle company, has also decided to cut more than 10% of its global workforce recently. Economic media outlet CNBC reported that Tesla is laying off 285 employees in New York State alone.
Alphabet also announced layoffs targeting an unspecified number of employees on the same day. This is interpreted as following CEO Sundar Pichai's earlier warning at the beginning of the year that "more layoffs may occur this year" due to cost-cutting and other reasons.
Google stated that this layoff is not a company-wide measure and did not disclose specific numbers. Business Insider reported that the real estate and finance departments were affected. Alongside this, Google also carried out organizational restructuring, including redeployment of some employees to expand investments related to artificial intelligence (AI). Major foreign media reported, "Concerns are growing that layoffs by companies may continue amid economic uncertainty."
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