A cash-saving move
Among the looming layoffs across the American businesses, Rivian has
confirmed in an email on Wednesday that it is slashing 6% of its 14,000
workers. This accounts for the downsizing of around 840 positions.
The reason, broadly, is two-fold: Rapidly changing economy and inflationary pressure
Amy Mast, a spokesperson for the company wrote,
Today we announced the difficult decision to reduce the size of the Rivian team by approximately 6%. This decision will help align our workforce to our key business priorities, including ramping up the consumer and commercial vehicle programs, accelerating the development of R2 and other future models, deploying our go-to-market programs and optimizing spend across the business
Chief Executive RJ Scaringe writes,
The move is part of a cost-cutting effort to ensure Rivian can continue to grow its manufacturing operations without raising additional funds”. And the layoffs wouldn’t apply to the manufacturing operations in Normal, Ill., where Rivian has its sole factory
Bloomberg reports that the company’s leadership suggests this move at nonmanufacturing positions.
Electric car maker, Rivian wanted to cut costs. The email which was also
sent to The Verge earlier this month exactly states
We’ve implemented changes across Rivian, including prioritizing certain programs (and stopping some), halting certain non-manufacturing hiring and adopting major cost-down efforts to reduce material spending and operating expenses. We also began the process of aligning the organization as a whole to ensure we are as focused, nimble and efficient as possible to achieve our priorities and objectives.
The news rolled out at a time when the company started the production of its pickups, SUVs, and delivery vans for Amazon. Rivian isn’t the only company laying off its workforce.
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