Rivian Cuts Another 10% Of Staff

Rivian is shedding 10% of its salaried workforce, the EV startup announced on Wednesday because it reported fourth-quarter and full-year earnings. It is the corporate’s second spherical of layoffs prior to now yr. 

The information comes amid a broader slowdown within the EV business. Rivian has but to show a revenue on its autos and is beneath pricing strain from business chief Tesla. The corporate mentioned it’s within the midst of a “company-wide cost-transformation program.”

“Our enterprise is dealing with a difficult macroeconomic atmosphere—together with traditionally excessive rates of interest and geopolitical uncertainty—and we have to make purposeful modifications now to make sure our promising future,” Rivian founder and CEO R.J. Scaringe mentioned in an electronic mail to workers on Wednesday. “We should strategically prioritize our development areas of the enterprise, together with the launch of Peregrine and R2 in addition to investing in our go-to-market capabilities.”

The transfer additionally comes round a time when numerous tech companies, together with Google and Amazon, are enacting layoffs as effectively. 

The R2 is Rivian’s upcoming compact SUV that the corporate hopes will drive extra gross sales than its present crop of huge, costly autos. Peregrine is the interior title for the firm’s next-generation EV architecture. 

Rivian reported its fourth-quarter and full-year earnings on Wednesday, saying that it plans to supply 57,000 autos in 2024, roughly the identical quantity because it manufactured in 2023. 

Wall Road, evidently, is not proud of the shortage of development envisioned for this yr. Rivian’s share value plummeted roughly 14% in after-hours buying and selling. 

Contact the writer: tim.levin@insideevs.com