EV maker Rivian pulls the plug on 10% of salaried workforce after reporting $5.4 billion loss

[Jobhunter]

Image: Rivian

 

Rivian, the electric vehicle (EV) startup, announced it is laying off 10% of its salaried workforce. This decision comes in the wake of the company’s efforts to optimize cost efficiency and navigate through economic and geopolitical uncertainties.

 

Rivian, known for its innovative electric vehicles, has been facing pricing pressure in the increasingly competitive EV market. Despite doubling the number of EVs it built and shipped in 2023 compared to 2022, Rivian reported a loss of more than $5.4 billion for the year. The company expects to produce 57,000 vehicles in 2024, roughly the same number as it manufactured in 2023.

 

The layoffs are part of Rivian’s “company-wide cost-transformation program” and come at a time when the EV industry is experiencing a broader slowdown. However, Rivian confirmed that the layoffs would not affect hourly manufacturing workers at its plant in Normal, Illinois.

 

Rivian’s CEO, R.J. Scaringe, emphasized the need for strategic prioritization of growth areas of the business, including the launch of Peregrine and R2, as well as investing in go-to-market capabilities. The R2 is Rivian’s upcoming compact SUV that the company hopes will drive more sales than its current crop of large, expensive vehicles.

 

The news of Rivian’s layoffs has sent ripples through the automotive industry and the stock market, with Rivian’s share price plummeting roughly 14% in after-hours trading. This development raises the question: How will these layoffs impact Rivian’s future and the broader EV industry? We invite you to share your thoughts on this significant event.

 

 

Read more:

• https://techcrunch.com/2024/02/21/rivian-lays-off-10-of-workforce-as-ev-pricing-pressure-mounts/
• https://www.automotivedive.com/news/rivian-salaried-staff-reduction/708175/
• https://insideevs.com/news/709592/rivian-layoffs-2024/