Rivian prepares to lay off 6% of workforce
US electric car startup Rivian is apparently planning more job cuts. Rivian plans to lay off six per cent of its workforce to cut its ongoing costs, according to a leaked email from CEO R.J. Scaringe to employees.
According to the statement, the company plans to lay off about 840 of its roughly 14,000 employees without affecting production operations at its Normal plant in the US state of Illinois. Rivian had already cut staff on a similar scale last year. The company is currently focusing its resources on ramping up vehicle production and achieving profitability.
“We must focus our resources on ramp and our path to profitability,” Scaringe wrote in the email, as well as apologizing to the workforce for the necessity of the cuts. Rivian has been having trouble ramping up production for some time, and even replaced their head of production last year.
Rivian had posted a net loss of $1.72 billion in Q3 2022 alone. Rivian narrowly missed its 2022 production target. At the end of last year, Rivian had also put plans to build electric vans in Europe together with Mercedes-Benz on hold.
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