Rivian (RIVN) announces 6% cut in its workforce to focus on production ramp

Rivian (RIVN) announced this week that it is laying off 6% of its workforce in order to concentrate on its electric pickup truck production ramp.

Above the past number of months, several tech businesses have declared layoffs in response to the altering financial state that factors toward a recession.

In the EV market, Tesla declared it is laying off about 10% of its salaried employees – while we noted that it also laid off numerous hourly staff members around the final number of months.

Now Rivian is also saying some layoffs with an envisioned 6% cut in headcount.

There experienced been rumors that this was in the programs in excess of the previous several weeks, but CEO RJ Scaringe verified it in an email to employees yesterday (by using Techcrunch):

“Over the final six months, the world has dramatically improved with inflation achieving history highs, curiosity fees rapidly soaring and commodity rates continuing to climb — all of which have contributed to the international funds markets tightening. We are financially effectively positioned and our mission is additional essential than at any time, but to absolutely know our probable, our method ought to help our sustainable expansion as we ramp towards profitability. We need to have to be capable to keep on to develop and scale without the need of more funding in this macro environment. To achieve this, we have simplified our solution roadmap and focused on wherever it is most impactful to deploy money.”

Looking at Rivian employs about 14,000 personnel, a 6% slash will have an effect on hundreds of personnel.

Nevertheless, Rivian is remaining a great deal more generous than the Texas-based automaker as its severance packages include things like 14 months of regular pay back and wellness protection, Rivian-paid out COBRA rewards and continuation of mental health and fertility rewards via the finish of the 12 months, job placement guidance and this quarter’s equity vesting.”

Scaringe also apologized in an email to staff members:

“To these leaving Rivian, I am genuinely sorry. Thank you for pouring so a lot of on your own into what we’re creating. You will usually be a section of our tale and proceed to be an vital component of our neighborhood.”

Since Rivian is striving to focus its resources on its output ramp of the R1T electric pickup truck, R1S SUV, and its electric powered supply van, the automaker verified that the manufacturing functions crew working at its Typical, Illinois plant would not be impacted by the layoffs.

Very last quarter, Rivian produced 4,401 electric powered cars – bringing the full to 7,969 EVs given that the commence of output late very last year. The automaker aims to construct 25,000 cars this 12 months.

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