The young manufacturer of electric vehicles is looking to reduce its costs in full increase in production rates. Rivian is preparing for tough times ahead.

The young maker of electric vehicles, considered one of Tesla's great rivals, wants to prevent a potential downturn from disrupting its projects.

The company is currently increasing production rates to meet significant demand, this phase of growth being one of the most critical in the life and existence of an automotive company.

The supply chain has been severely disrupted by the COVID-19 pandemic, which penalizes suppliers. All these constraints only drive up costs, further compounding losses for young automakers like Rivian

Rivian said, "Supply chain continues to hinder our production. This challenge continues in some technological components such as semiconductors, as well as some non-semiconductor components.

Rivian plans to reduce its workforce by 5%, with Rivian expected to use $2.6 billion for capital spending in the second quarter ending this month.

However, the company would like to keep its cost under control. According to Bloomberg News, Rivian plans to cut hundreds of jobs. These layoffs will only apply to non-manufacturing roles.

Overall, Rivian plans to lay off 5% of its 14,000 employees, says Bloomberg, which quotes people familiar with the matter.

If Rivian confirms these job cuts, which are expected to be announced in the coming weeks, the company will follow in Tesla's footsteps.