Tesla rival Rivian plans to cut about 700 jobs, mostly in non-manufacturing roles: report

• Rivian is planning to lay off about 700 employees, or 5% of its workforce, according to Bloomberg.
• There's been a wave of layoffs in the US due to slowing growth and rising labor costs.

Rivian is planning to lay off about 700 employees, or 5% of its 14,000-strong workforce, Bloomberg reported on Tuesday.

The move aims to cut down staffing in areas where it has grown too fast, the news outlet reported, citing people familiar with the matter. The job cuts, which could be announced in the next few weeks, will zoom in on non-manufacturing roles, per Bloomberg.

Like its peers in the auto industry, Rivian has been dealing with global supply chain disruptions and a shortage of parts. In a May letter to shareholders, the company wrote that it has been forced to stop production for longer periods than it had expected due to supplier constraints since March 31. That has resulted in about a quarter of planned production time lost, the company wrote.

The news about layoffs at Rivian comes amid a surge in US layoffs due to slowing growth, rising labor costs, and concerns about a recession.

In the EV space, Tesla also started laying off staff last month after CEO Elon Musk told executives in an email he had a "super bad feeling" about the economy.

Rivian did not immediately respond to Insider's request for comment that was sent outside regular business hours. It declined comment to Reuters.

Rivian's share price is down about 71% year-to-date.