Rivian, the buzzing EV carmaker that had one of its largest IPOs in 2021, is cutting 6% of its workforce for the second time in less than a year, according to an internal memo that founder and CEO RJ Scaringe sent to employees today. sent.
Reuters was the report first about the cuts. businessroundups.org also reviewed the leaked memo. A Rivian spokesperson confirmed the layoffs.
The memo comes six months after Rivian began the first layoffs. In July, Rivian cut 6% of its approximately 14,000 employees as the company attempted to cope with macroeconomic headwinds from rising inflation, interest rates and commodity prices.
Production jobs at the Normal, Illinois plant will not be affected, according to the memo sent out Wednesday. The cuts are aimed at reducing Rivian’s operating costs amid a weakening economy and price pressure from Tesla and other automakers.
“To achieve long-term results, we must focus our resources on the disaster and our path to profitability, while ensuring we have the right set of future products, services and technology that continue to challenge convention,” Scaringe wrote. in the memo. “In 2022, we have taken steps to focus our product portfolio and achieve a lower cost structure. Continuing to improve our operational efficiency on the road to profitability is a core goal and requires us to focus our investments and resources on the areas of our business with the greatest impact. This includes the continued ramp-up of R1 and EDV production and the launch of our large-scale R2 platform. The changes we are announcing today reflect this focused roadmap.”
Tesla, the leader in electric car sales that has one of the higher profit margins in the industry, has discounted its vehicles or offered credits at least four times in recent months, prompting many in the industry to call an electric vehicle price war. . Ford recently followed Tesla’s lead, forcing other automakers to consider the same move or risk seeing sales drop.
Sales of Rivian’s premium all-electric R1T truck and R1S SUV could decline as consumers turn to other, less expensive options. Ford has not lowered the price of its F-150 Lightning truck, giving Rivian a temporary reprieve.
