After launching its IPO to tremendous hype and seeing its share price surge, Rivian has faced some tough realities as of late, including some problems that are plaguing all automakers at the moment. That includes, of course, the company’s inability to secure much-needed parts due to ongoing supply constraints, while rising costs of goods also prompted Rivian to raise its prices significantly. Regardless, the automaker notes that it is on track to meet its (recently reduced) goal of producing 25,000 vehicles this year. Ford – one of Rivian’s biggest backers – has sold millions of its shares in the company, regardless, and as Ford Authority reported earlier this month, the EV automaker has been looking at trimming its workforce following a rapid expansion. Now, it has done exactly that, according to CNN.
CEO RJ Scaringe reportedly revealed this information to employees via a company-wide email, which notes that Rivian is cutting 840 of its 14,000 workers, or around six percent of its workforce as the “world has dramatically changed.” Scaringe specifically mentioned inflation, commodity prices, and surging interest rates as the driving forces behind this particular layoff.
“We are financially well positioned and our mission is more important than ever, but to fully realize our potential, our strategy must support our sustainable growth as we ramp towards profitability.” Scaringe said. Rivian is offering the employees it lays off 14 weeks of pay and healthcare coverage through the end of the year as well.
As Rivian seeks to ramp up production at its plant in Normal, Illinois, the automaker is also working on a second location in Georgia, which is expected to eventually employ as many as 7,500 people. Meanwhile, the company’s cash reserves remain strong, with $17 billion on hand as of the end of March.