Rivian, the electric vehicle maker, is facing tough times as it continues to lose money. In order to keep up with the competition and reduce costs, CEO RJ Scaringe has announced job cuts for 6% of the company’s workforce, equating to around 840 employees.
The decision was made to focus resources on ramping up production and reaching profitability. The cuts will not affect manufacturing positions at the plant in Normal, Illinois. Rivian has declined to comment on the layoffs, but confirmed the authenticity of the internal email obtained by Reuters. CEO Scaringe apologized for the difficult decision but emphasized that it was necessary for the company’s future success.
Rivian will announcing its Q4 2022 and full-year earnings on February 28, the company posted a staggering $1.7 billion net loss in Q3, leaving it with $13.8 billion in cash reserves to sustain operations until 2025.
The company has made efforts to reduce its expenses, as evidenced by its decision to cancel plans for a joint venture with Mercedes Benz to produce electric delivery vans in Europe just three months after the initial announcement.
Additionally, Rivian has had to make workforce reductions in the past, with 700 jobs, or 5% of its employees, being cut in July.
