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Ford Backed Rivian Aims To Cut Workforce After Rapid Expansion

Upstart EV automaker Rivian has had a rough time launching a brand new car company in the midst of multiple supply chain shortages, one that has seen it struggle to secure enough parts to ramp up production as planned. The company’s inability to do so caused its stock to quite literally tank, and Ford – a major early investor in Rivian – has since sold off millions of shares after “losing” a substantial amount of potential value in that regard. Regardless, Rivian is still on track to meet its revised production goals for the year, but now, the company is planning on trimming its workforce after a rapid expansion, according to Bloomberg.

Rivian is reportedly planning on laying off hundreds of employees after it apparently grew too quickly in certain aspects, or more specifically, the manufacturing side of things, where the company has some redundancies. Rivian currently employs around 14,000 people, and is apparently planning on trimming around five percent of that workforce in total, with an announcement on the matter expected in the coming weeks.

As of now, the company hasn’t made any final decisions regarding which employees it will lay off, but it has reportedly doubled its workforce in the past year as it attempted to ramp up production significantly. However, supply chain shortages have wreaked havoc on those plans, though the automaker’s cash reserves remain strong with $17 billion on hand as of the end of March.

Rivian isn’t along in that regard, as Tesla CEO Elon Musk recently stated that he sees a looming recession as inevitable, and noted that the automaker will cut 10 percent of its salaried jobs as a result. However, Musk also noted that he plans on keeping the company’s manufacturing jobs intact for now.

We’ll have more on Rivian soon, so be sure and subscribe to Ford Authority for more Rivian news and non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Tigger

    Unfortunately, I think this is just the beginning. Ironically, the “green revolution” may lead to a slowing of the EV “revolution.” This administration’s attack on fossil fuels and the subsequent inflation and recession that it caused will lead to gas prices falling dramatically as they did in 2008. There will be less demand for EVs since gas will be cheaper and people will be holding on to their vehicles longer. I see a lot of EV startups- including Rivian- going by the wayside or drastically cutting their expectations. I would also not be surprised to see some EV-related factory projects on the part of OEMs get scaled back or cancelled.

    Reply
  2. hot toddy

    maybe if they had instituted these cost cutting measures in the beginning they wouldn’t have to cut back now, but when it’s not your money you aren’t all that careful.

    Reply
  3. Ford Smith

    Ford has proven that investment in plants in India an California have proven to give poor returns while they have turned there back on current product
    Development that has given there competition an current edge both in truck an SUV sales

    Plus now they are trying to eliminate their dealer body in favor of trying to duplicate a comparator an with all companies who do not lead but chase a winner they definitely become the poorer for their lack of creativity an effort

    Ford in the past was been a leader in every aspect of the auto market an in the last thirty years have lost leadership an market share to the point they will not have product leadership in any category an to loss the number one spot in trucks
    That should say it all

    Reply

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