Rivian is shedding 10% of its salaried workforce in a bid to chop prices in an more and more robust marketplace for electrical automobiles, placing much more strain on its future, extra reasonably priced EV referred to as the R2. A restricted variety of non-manufacturing hourly staff will even be minimize, founder and CEO RJ Scaringe stated in a companywide e-mail.
That is the third spherical of layoffs for the EV firm since July 2022 when Rivian minimize 6% of its workforce. The corporate minimize another 6% of jobs in February 2023.
The corporate greater than doubled the variety of EVs it built and shipped in 2023 in comparison with 2022. However Rivian nonetheless misplaced greater than $5.4 billion for the 12 months, and announced Wednesday that it solely expects to construct the identical quantity — 57,000 — electrical automobiles throughout all of 2024.
Consequently, Rivian says it expects to lose round $2.7 billion in 2024, and has determined to “continue its company-wide cost transformation program.” That features modifications to the design and engineering of its automobiles, making manufacturing extra environment friendly, and shedding extra staff.
The corporate’s manufacturing and revenue loss steering mixed with the layoffs pushed Rivian shares down greater than 15% in after-hours buying and selling.
“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,” founder and CEO RJ Scaringe stated in an e-mail to the corporate. “We must strategically prioritize our growth areas of the business, including the launch of Peregrine and R2 as well as investing in our go-to-market capabilities.”
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