Rivian (RIVN) introduced this week that it’s shedding 6% of its workforce so as to concentrate on its electrical pickup truck manufacturing ramp.
Over the previous couple of months, many tech corporations have introduced layoffs in response to the altering financial system that factors towards a recession.
Within the EV trade, Tesla introduced it’s shedding about 10% of its salaried workers – although we reported that it additionally laid off many hourly workers over the previous couple of months.
Now Rivian can be asserting some layoffs with an anticipated 6% lower in headcount.
There had been rumors that this was within the plans over the previous couple of weeks, however CEO RJ Scaringe confirmed it in an electronic mail to workers yesterday (through Techcrunch):
During the last six months, the world has dramatically modified with inflation reaching file highs, rates of interest quickly rising and commodity costs persevering with to climb — all of which have contributed to the worldwide capital markets tightening. We’re financially effectively positioned and our mission is extra necessary than ever, however to totally notice our potential, our technique should help our sustainable progress as we ramp towards profitability. We want to have the ability to proceed to develop and scale with out extra financing on this macro surroundings. To realize this, we’ve got simplified our product roadmap and targeted on the place it’s most impactful to deploy capital.
Contemplating Rivian employs about 14,000 employees, a 6% lower will have an effect on lots of of workers.
Nonetheless, Rivian is being much more beneficiant than the Texas-based automaker as its severance packages embody 14 weeks of normal pay and well being protection, Rivian-paid COBRA advantages and continuation of psychological well being and fertility advantages by means of the tip of the yr, job placement help and this quarter’s fairness vesting.
Scaringe additionally apologized in an electronic mail to workers:
To these leaving Rivian, I’m genuinely sorry. Thanks for pouring a lot of your self into what we’re constructing. You’ll all the time be part of our story and proceed to be an necessary a part of our group.
Since Rivian is making an attempt to focus its sources on its manufacturing ramp of the R1T electrical pickup truck, R1S SUV, and its electrical supply van, the automaker confirmed that the manufacturing operations staff working at its Regular, Illinois, plant wouldn’t be impacted by the layoffs.
Final quarter, Rivian produced 4,401 electrical autos – bringing the overall to 7,969 EVs because the begin of manufacturing late final yr. The automaker goals to construct 25,000 autos this yr.
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