Rivian announced Wednesday it will lay off about 10% of its staff.

The maker of the all-electric R1S SUV and R1T pickup truck cited economic and geopolitical uncertainties and pressures, including historically high interest rates, for its decision.

“We made great progress in 2023 despite economic headwinds, and we’re excited about the year ahead,” Rivian founder and chief executive RJ Scaringe said on the company’s website. “We firmly believe in the full electrification of the automotive industry but recognize in the short-term, the challenging macro-economic conditions.”

The company made the announcement in its fourth quarter and full year 2023 financial results statement on Wednesday. Rivian made “continued progress against key value drivers including ramping production, improving cost efficiency and driving demand through successfully introducing new technologies and enhancing the customer experience” that allowed the company to produce 57,232 vehicles last year.

While that’s more than double what Rivian built in 2022, in the coming year, Rivian expects its 2024 production levels to be the same as last year.

Sales of electric vehicles began to wane last year as customer demand weakened. Inventories of EVs were the highest of all vehicle types, with 92% more cars on dealership lots at the end of 2023 compared with a year earlier. That has led to electric vehicle prices falling to their lowest-ever level: $50,798.

Cox Automotive predicts the increasing EV inventories will lead to even more price declines in 2024. Following multiple price cuts from EV market leader Tesla, Rivian cut its vehicle prices by $3,100 this month.

The salaried workforce layoff announcement comes just two weeks before Rivian is set to reveal its first new vehicle since going into production on its R1S and R1T in 2021. The R2 will be a midsize platform.