Electric-vehicle startup
Rivian Automotive Inc.
RIVN 1.01%
is laying off 6% of its 14,000 employees, a cash-saving move aimed at responding to inflationary pressures and a rapidly changing economy, according to an internal email sent to workers Wednesday and reviewed by The Wall Street Journal.
The move is part of a cost-cutting effort to ensure Rivian can continue to grow its manufacturing operations without raising additional funds, Chief Executive
RJ Scaringe
wrote in the email disclosing the layoffs. He confirmed that the layoffs wouldn’t apply to the manufacturing operations in Normal, Ill., where Rivian has its sole factory.
“Over the last six months, the world has dramatically changed with inflation reaching record highs, interest rates rapidly rising and commodity prices continuing to climb—all of which have contributed to the global capital markets tightening,” Mr. Scaringe wrote.
Rivian had informed employees of the looming layoffs earlier this month in an email and companywide meeting.
The move to conserve cash at even well-funded startups like Rivian, which went public in November and raised $12 billion, highlights the increasing strain on young electric-vehicle companies with little revenue in an increasingly competitive market.
This week,
Faraday Future Intelligent Electric Inc.
said it was pushing back the start of production of its FF 91 electric SUV and needed to raise $325 million to fund its operations through the end of the year.
Rivian continues to struggle in its effort to get its assembly factory operating at its full capacity of 150,000 a year. The company slashed its production forecast in half to 25,000 in March, citing a parts shortage.
Rivian also delivered the first of its battery-powered delivery vans to
Amazon.com Inc.
The company has a contract to deliver 100,000 vans to Amazon by 2030.
In addition to the head-count reductions, Mr. Scaringe said Rivian was focused on increasing production of the $67,500 R1T pickup truck and $72,500 R1S sport-utility vehicle, as well as the Amazon van.
Rivian is also planning to build a second $5 billion factory in Georgia, which will produce a cheaper vehicle it calls the R2. Mr. Scaringe wrote in his email that he intended to accelerate development and launch of the R2.
Rivian is scheduled to release second-quarter results on Aug. 12.
Write to Sean McLain at [email protected]
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Appeared in the July 28, 2022, print edition as ‘Rivian Lays Off 6% of its Workforce.’
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