Rivian has announced a significant restructuring of its production shifts at its manufacturing facility in Normal, Illinois, with plans to reduce the number of shifts from three to two starting next month. The company describes this move as a strategic decision to optimize production efficiency.
The decision comes after Rivian revealed plans to lay off 10% of its salaried workforce, as detailed in its Q4 and 2023 financial report.
See also: Rivian Reports 2023 Financial Results: Net Loss of $5.4 Billion Despite Increased Sales
Approximately 8,000 employees are based at Rivian’s Normal facility, with the majority in hourly manufacturing roles. Despite the shift reduction, Rivian has confirmed that all hourly workers will be accommodated in one of the remaining two shifts, allowing them to express their shift preferences. Each shift is expected to produce more vehicles than before.
The two shifts are scheduled to commence on April 28, 2024, according to a Rivian spokesperson speaking with WGLT.
Rivian’s decision follows its forecast of lower-than-expected growth in 2024. Despite exceeding its guidance and producing over 57,000 EVs in 2023, with deliveries surpassing 50,000, Rivian now anticipates producing 57,000 vehicles in 2024.
See also: Rivian’s R2 Electric SUV Details Accidentally Leak Ahead of March 7 Unveiling
In June 2023, Rivian added a third production shift to meet growing demand. However, with improved production efficiency and a strategic assessment of market dynamics, including the impact of high interest rates on EV demand, Rivian is confident it can achieve its 2024 production goal with two shifts. This adjustment aligns with Rivian’s broader strategy to navigate economic challenges while upholding its commitment to innovation and sustainability.
The announcement of the shift reduction comes shortly before Rivian is set to unveil its next-generation R2 vehicle. Positioned as a more affordable and compact SUV option, the R2 will be manufactured at the company’s Georgia factory, currently under construction, suggesting a potential release date for the R2 in 2026.
