RIVIAN

Electrified vehicle maker will cut 6% of its workforce

"Growing pains" are haunting American company Rivian, which last year began mass production of electric R1T pickups and R1S crossovers, but in March was forced to admit that prices for the products would have to rise significantly. Now it's time for other cost optimization methods - the company has notified employees of the upcoming 6% staff reduction.

As Reuters explains, citing a letter from Robert Joseph Scaringe to employees at Rivian, which he heads, the production team at the Illinois plant, where the electric vehicles are being assembled, will not be affected by the cuts. Over the next 18 months, according to the CEO and founder, Rivian will focus on improving the performance of Amazon's R1-based electric vehicles and EDV commercial vans, as well as accelerating the development of the R2 platform, which should form the foundation of the next generation. of the brand's consumer models by 2025. As Scaringe emphasized in a letter to employees, the company is now financially sound, but to fully realize its potential, it must improve profitability.

As of December 31 of last year, Rivian had over 10,000 employees. It turns out that about 600 people will be cut. At the end of the first quarter, Rivian had $16 billion in cash, in the second quarter of this year, the company produced 4,401 electric vehicles, a sequential increase of 72%, and the number of vehicles shipped increased 267% to 4,467 units. By the end of this year, Rivian plans to launch 25,000 electric vehicles, although the number of pre-orders for the two existing models has already exceeded 90,000 units.

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