Toronto, Ontario — This week, two electric vehicle makers announce job cuts in the North American market while Canadian Tire revives its share prices.
Relieved from Rivian
Rivian is laying off six percent of its workforce, CEO R.J. Scaringe announced in an email to employees last week.
Analysts suspect the layoffs to be prompted by recent price wars in the electric vehicle industry. Both Tesla and Ford have slashed EV prices in recent weeks.
“We must focus our resources on ramp [up] and our path to profitability,” Scaringe said in the email to Rivian employees, which was obtained by Reuters.
Approximately 840 employees will be affected, though manufacturing operations at the EV automaker’s Illinois plant will not see an impact.
Rivian was trading at US$20.08 per share as of Monday at 2 p.m. EST; up under one percent from Friday’s close.
In other electric vehicle job cut news, Vietnamese car maker VINFast announced cuts in its North American market on Monday.
The company, a subsidiary of Vingroup, is expanding in the United States. Analysts believe the merger as the reason for the layoff.
VINFast did not confirm exactly how many employees were let go, a source told Automotive News Canada that 30 of about 100 employees were let go last Thursday. The source also said corporate office staff were impacted, not employees of the automaker’s eight retail locations in Canada.
The consolidation of VINFast’s U.S. and Canadian business and management operations was announced on Jan. 25.
Canadian, but not tired
Canadian Tire share prices have grown more than 12 percent year-to-date, largely thanks to recent inflation and consumers’ cautiousness when it comes to spending habits.
Analysts from the Motley Fool expect inflation control to result in further growth for Canadian Tire stocks, the stocks site wrote on Monday, pointing out that the retail giant provides “a top choice for Canadians seeking auto parts” during an economic downturn.
“Canadians are likely to move back toward [Canadian Tire’s] stock for more than just new tires in the months to come,” wrote the Canadian market watch site.