Should Rivian Investors Be Alarmed After the EV Maker's Recent Move?

Automakers of all kinds, from the largest global automakers to full electric vehicle (EV) start-ups, have had plenty of strategy adjustments to make with the implementation of tariffs on imported vehicles and automotive parts, as well as the ending of the $7,500 EV purchase tax credit. Some automakers have paused vehicle launches and adjusted vehicle production, among other moves valued in the billions of dollars. Rivian (NASDAQ: RIVN) announced that it is taking steps to cut workforce -- is it a red flag for investors?A witch's cauldron wasn't the only thing brewing this Halloween season, with changes brewing at EV maker Rivian. The automaker announced that CEO RJ Scaringe will serve as interim marketing chief as Rivian restructures key operations and slashes more than 600 jobs. The strategy is to integrate vehicle operations into its service team "to create fewer customer handoffs," said an internal memo, according to Automotive News. While this shake-up and round of layoffs shouldn't be a total surprise, it is larger than previous moves. Rivian cut about 1.5% of its workforce in September, and roughly 1% in June, while this round was closer to 4.5%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool