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Rivian, the buzzy EV automaker that had one of many largest IPOs in 2021, is slicing 6% of its workforce for the second time in lower than a yr, in line with an inside memo despatched to workers as we speak by founder and CEO RJ Scaringe.
Reuters was the primary to report in regards to the cuts. TechCrunch has additionally considered the leaked memo. A Rivian spokesperson confirmed the layoffs.
The memo comes six months since Rivian initiated its first layoffs. In July, Rivian lower 6% of its roughly 14,000-person workforce as the corporate tried to get forward of macroeconomic headwinds brought on by rising inflation, rates of interest and commodity costs.
Manufacturing jobs on the firm’s Regular, Illinois manufacturing facility won’t be impacted, in line with memo despatched Wednesday. The cuts are geared toward reducing Rivian’s operational prices amid a weakening economic system and pricing strain from Tesla and different automakers.
“To ship over the long-term, we should focus our sources on ramp and our path to profitability whereas guaranteeing we now have the suitable set of future merchandise, providers and expertise that can proceed to problem conference,” Scaringe wrote within the memo. “In 2022, we took steps to focus our product portfolio and drive a decrease price construction. Persevering with to enhance our working effectivity on our path to profitability is a core goal and requires us to pay attention our investments and sources on the best influence components of our enterprise. This contains the continued ramp of R1 and EDV manufacturing as properly the launch of our high-volume R2 platform. The modifications we’re asserting as we speak replicate this centered roadmap.”
Tesla, the EV gross sales chief that has one of many increased revenue margins within the sector, has discounted its automobiles, or supplied credit, a minimum of 4 occasions up to now a number of months, kicking off what many within the trade have dubbed an EV value battle. Ford not too long ago adopted Tesla’s lead, forcing different automakers to contemplate making the identical transfer or danger seeing a drop in gross sales.
Gross sales of Rivian’s premium all-electric R1T truck and R1S SUV might drop if customers flip to different decrease priced choices. Ford has not lowered the worth of its F-150 Lightning truck giving Rivian a reprieve for now.
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