Rivian, the electric vehicle manufacturer, has recently announced a reduction in its workforce of 6% as part of its efforts to lower costs. The decision was communicated by CEO R.J. Scaringe in an internal email, which was first reported by Reuters. This reduction will result in the loss of 840 jobs, given Rivian’s current workforce of approximately 14,000 employees.
In his email, Scaringe stated that this difficult decision was necessary to ensure that the company could continue to ramp up production and eventually become profitable. He explained that they need to focus their resources on ramping up and their path to profitability.
Rivian has attracted major investors such as Amazon and Ford, but the company has struggled to meet production and delivery targets. This has been compounded by recent price cuts from Tesla, which have made Rivian’s prices less competitive. This is not the first time that Rivian has been forced to cut its workforce, as last July about 5%, or 700 jobs, were laid off.
Despite the layoffs, Scaringe expressed his apologies for having to make this decision and expressed his confidence in the company’s future success. The CEO’s statement highlights the challenges that Rivian faces in a highly competitive electric vehicle market, and the difficult decisions that the company needs to make in order to achieve its goals.
