Exclusive: Power producer Rivian to cut 6% of jobs amid price war
SAN FRANCISCO, Feb 1 (Reuters) – Rivian Automotive ( RIVN.O ) is cutting 6% of its workforce to cut costs as the EV maker struggles with dwindling cash reserves and a weak economy, supporting the industry. – extensive price war.
Chief Executive RJ Scaringe said in an email announcing the layoffs Wednesday car aims to increase production and achieve profitability. Reuters has obtained a copy of the email.
The layoffs at Rivian come amid falling EV prices, triggered by recent cutbacks by Elon Musk-led Tesla ( TSLA.O ) and Ford Motor Co ( FN ).
Rivian, Lucid Group ( LCID.O ) and Britain is expected to hurt EV startups such as Arrival, which said Monday it would lay off half of its employees.
Despite an initial public offering in November 2021, Rivia’s shares had fallen nearly 90% from that month’s peak to Tuesday’s close.
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“We need to focus our resources on ramping up and on our path to profitability,” Scaringe said in an email in which he apologized to employees for the need for the cuts.
A Rivian spokeswoman confirmed the email had been sent but declined to comment further.
Rivian said it is focusing on ramping up production of R1 trucks and EDV delivery vans and launching the R2 platform for its major shareholder Amazon.com ( AMZN.O ). “The changes we’re announcing today reflect this focused roadmap.”
California-based Rivian, which employs about 14,000 people, will lay off about 840 workers at its plant in Normal, Irvine, Illinois, in a move that will not affect manufacturing operations.
Rivian, which loses money on every car it makes, narrowly missed its full-year production target of 25,000 vehicles last year as it dealt with supply chain disruptions caused by the COVID-19 pandemic. Previously, he reduced this goal by half.
Late last year, Rivian scrapped plans to build delivery vans in Europe with Mercedes ( MBGn.DE ) to save cash. Rivian earlier in Georgia 5 that he built billion smaller R2 in dollar plant car postponed his family’s planned release by a year to 2026.
Last July, Rivian, which was scheduled to report fourth-quarter results on Feb. 28, laid off staff and halted some programs as part of a broader restructuring.
By September 30, 2022 car manufacturer 18 years ago billion 13.27, down more than a dollar billion dollars stated that he had cash and cash equivalents.
Reporting by Akash Sriram in Reuters Graphics Bengaluru and Abhirup Roy in San Francisco Editing by Ben Klayman and Nick Zieminski
Our standards: Thomson Reuters Trust Principles.
2023-02-01 21:42:28
Source – reuters
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