Rivian said it was laying off 10 percent of its workforce as concerns about slower electric vehicle sales continue to reverberate across the industry.

The company made the announcement as part of its fourth quarter earnings report, in which it said it likely wouldn’t make any more vehicles this year than it did in 2023. The company said it made 57,232 vehicles in 2023, of which 50,122 were delivered to customers. Rivian’s stock price fell on the news.

Rivian has gone through several rounds of layoffs in its short history. The company let go 6 percent of its workforce both in July 2022 and May 2023. This current round of layoffs is expected to affect over a thousand workers at the Irvine, California-based company, which has a combined workforce of 16,700 salaried and hourly employees.

A spokesperson said the layoffs would mostly affect the company’s salaried employees, as well as a limited number of hourly non-manufacturing workers, but declined to provide an exact number.

“Our business is facing a challenging macroeconomic environment—including historically high interest rates and geopolitical uncertainty—and we need to make purposeful changes now to ensure our promising future,” Rivian CEO RJ Scaringe said in an email to employees that was provided to The Verge.

Rivian said it expects to produce 57,000 vehicles in 2024, roughly the same number it made in 2023. The company cited “[e]conomic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates” as its reasoning for the flat production outlook.

The company will unveil its second-generation R2 vehicle next month, which is expected to be a smaller, more affordable compact SUV. Rivian makes three vehicles: the R1T truck, R1S SUV, and the EDV, which stands for electric delivery van.

During an earnings call with investors, Scaringe said the company was focused on reducing costs, most notably by shrinking the number of electronic control units (ECUs) found in each vehicle. He also talked up the imminent release of R2, despite the fact that the vehicle won’t go into production until late 2026.

“We’re in a very interesting moment in time where there is a lack of choice of highly compelling EV products in that $45 to $55,000 price range,” he said.

Rivian’s R1T and R1S vehicles both start at around $72,000, though most sell for more than that. By comparison, R2 is expected to be price in the range that Scaringe said was most neglected. EV sales hit 7 percent of the total vehicles sold in 2023 — the bulk of car shoppers are still looking for the right vehicle.

“How do we get the 93 percent of the market that’s not buying an EV to get excited about the product?” Scaringe asked.