Electric vehicle startup Rivian Automotive is programming layoffs that could shrink its workforce by about 5% after the firm grew too quickly in some areas, Bloomberg reported on Monday.
The hundreds of layoffs could be announced in the coming weeks, Bloomberg reported, citing people familiar with the matter. But the staff cutting is still in the planning stage and no final decisions have been made, the report said.
The Irvine, California-based company has about 14,000 employees.
Rivian’s shares plunged 7% in mid-afternoon trading following the news.
Rivian has recruited thousands of new employees over the last year as it began production of its own electric trucks and SUVs as well as a delivery van for Amazon. Rivian″s shares surged amid intense investor interest shortly after it went public late last year, but have since fallen over 80% as the company has struggled to ramp up production amid global supply-chain disruptions.
A Rivian spokesperson declined to comment on the report.
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