Electric vehicle manufacturer Rivian (NASDAQ:RIVN)announced on Wednesday that it has reduced its workforce by about 1%, marking the second round of layoffs this year, as the company aims to lower costs amidst a broader slowdown in electric vehicle demand.

Shares of Rivian slightly reversed gains following the announcement, with a 1.3% increase in late afternoon trading.

“This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year,” stated the maker of R1S SUVs and R1T pickup trucks in an email to Reuters.

The recent reduction in workforce follows a 10% layoff at Rivian in February, a move prompted by the company’s lower-than-expected 2024 production forecast, which disappointed investors.

Cost reduction remains a priority for Rivian, especially amid high interest rates aimed at curbing inflation, which have dampened consumer demand for electric vehicles, typically priced higher than their gas-powered counterparts.

To manage costs, Rivian has pursued various strategies, including bringing some parts production in-house, renegotiating supply contracts, and temporarily shutting down its production line for upgrades aimed at enhancing efficiency and reducing expenses.