CNN
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Rivian introduced Wednesday that it’ll lay off 10% of its salaried staff starting Thursday morning, amid a quarterly loss and an more and more aggressive EV market.
“Our enterprise is going through a difficult macroeconomic surroundings — together with traditionally excessive rates of interest and geopolitical uncertainty — and we have to make purposeful modifications now to make sure our promising future,” founder and chief govt RJ Scaringe wrote in an electronic mail despatched to staff Thursday and shared by the corporate with CNN.
Rivian has a complete of 16,700 staff however wouldn’t disclose what number of of these are thought-about salaried staff. Rivian has beforehand, on two completely different events, laid off 6% of its workforce, as the corporate has appeared to cut back its losses.
Sales of electric vehicles has not expanded as rapidly in the past year because it had earlier than, and automakers have blamed excessive rates of interest for a few of that slow-down. On the similar time, Tesla has aggressively lower costs of its autos, placing stress on different automakers. Ford, as an example, not too long ago introduced it was deeply reducing costs of its Mustang Mach-E, a direct competitor to the Tesla Mannequin Y SUV.
Rivian, the California-based electrical truck, van and SUV maker, reported a lack of $1.5 billion within the fourth quarter of final 12 months, in contrast to a lack of about $1.7 billion throughout the identical interval in 2022. The corporate produced 57,000 autos final 12 months and delivered 50,000 to clients. Scaringe boasted that Rivian produced the best-selling electrical automobile over $70,000 final 12 months. In its shareholder letter, Rivian stated it anticipated deliveries to be the identical this 12 months though it expects to realize a “modest gross revenue” by the top of 2024.
Rivian will unveil its new smaller and cheaper shopper fashions, the R2S SUV and R2T pickup, in March, however these autos are usually not anticipated to be in manufacturing till 2026.