NORMAL, Ill. (WMBD) — A new report said Rivian is planning hundreds of layoffs, but it is yet undetermined if that will affect the manufacturing plant in Normal.
Bloomberg reported Monday that Rivian could set a target total reduction of about 5% of its more than 14,000 employees. This would result in at least 700 job losses across the company.
Rivian is the second-largest employer in McLean County, with more than 6,000 workers at its Normal plant.
Outside of Normal’s manufacturing plant, Rivian employees work in California, Michigan, Arizona, Vancouver, the UK, and the Netherlands.
Since nearly doubling its workforce within the past year, the electric automaker seems to be pulling back production as a result of global supply-chain issues and material shortages, the Bloomberg report noted.
Since the beginning of 2022, Rivian’s shares have fallen roughly 69%.
Bloomberg’s stated that this decision mirrors that of other corporations who may fear a recession. Tesla, for example, is reducing its salaried workforce by 10% in order to protect its manufacturing lines if the economy were to tumble.
Rivian declined to comment on the situation. The corporation is set to release its second-quarter financial results on Aug. 11.