Rivian to cut another 6% of its workforce • TechCrunch
Rivian, the famous electric car manufacturer has had one of the Biggest IPO of 2021is cutting 6% of its workforce for the second time in less than a year, according to an internal memo sent to employees today by founder and CEO RJ Scaringe.
Reuters is first to report about the cut. TechCrunch also took a look at the leaked memo. A spokesperson for Rivian confirmed the layoffs.
The memo comes six months after Rivian began its first round of layoffs. In July, Rivian cut 6% of the workforce by about 14,000 people as the company tries to stay ahead of macroeconomic headwinds caused by rising inflation, interest rates and commodity prices.
Production at the company’s Normal, Illinois plant will not be affected, according to a memo sent Wednesday. The cuts are intended to reduce Rivian’s operating costs amid a weakening economy and price pressure from Tesla and other automakers.
“To deliver over the long term, we must focus our resources on the ramp and path to profitability while ensuring we have the right set of products, services and technologies going forward. continues to defy convention,” Scaringe wrote in the memo. “In 2022, we have taken steps to focus on our product portfolio and promote a lower cost structure. Continuing to improve operational efficiency on the path to profitability is a core goal and requires us to focus our investments and resources on the highest impact parts of our business. This includes continued R1 and EDV production as well as the launch of our volume R2 platform. The changes we are announcing today reflect this focused roadmap.”
Tesla, a leader in electric vehicle sales with one of the highest margins in the sector, has slashed prices or offered credits on its vehicles at least four times in the past few months, starting in what many in the industry call an electric vehicle price war. . Ford recently followed Tesla’s lead, forcing other automakers to consider making the same move or risk losing sales.
Sales of Rivian’s premium all-electric R1T truck and R1S SUV could decline if consumers switch to other lower-priced options. Ford did not discount its F-150 Lightning truck to grant Rivian a pardon at this time.