- Rivian to slash over 800 employees.
- CEO RJ Scaringe cited concerns such as inflation, increasing interest rates, and rising commodity prices for the decision.
- The company gave departing workers 14 weeks of normal pay.
According to an email issued by CEO RJ Scaringe to Rivian’s about 14,000 employees, the company, which is financed by Amazon, is cutting off about 6 percent of its workforce as it adapts to how the “world has significantly changed.”
On Wednesday, the business informed about 840 of those workers that they would be leaving.
Scaringe cited concerns such as inflation, increasing interest rates, and rising commodity prices for the startup automaker’s decision to reduce its staff.
Rivian’s three original models, the R1T truck, the R1S luxury SUV, and an electric delivery van for which Amazon, a significant Rivian investor, is the main customer, have only recently begun production.
The R1T pickup and R1S SUV have garnered favorable reviews from critics, and the truck was named Truck of the Year by MotorTrend.
The firm has seen some difficulties ramping up its manufacturing, with Scaringe citing supply chain concerns and the competitive labour market in particular as difficulties.
Although Rivian presently produces its electric vehicles in a former Mitsubishi facility in Normal, Illinois, the manufacturer is already preparing to build a second facility close to Atlanta.
Up to 7,500 workers could potentially be employed by the Georgia business.
Our purpose is more vital than ever, and we are in a strong financial position, but in order to reach our full potential, our strategy must support our steady growth as we move closer to profitability.
Scaringe announced the layoffs in an email to the staff.
The company, which is based in Irvine, California, gave departing workers 14 weeks of normal pay and continued healthcare coverage until the end of the year.
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