Electrical truck maker Rivian Automotive stated it’s shedding 6% of its workforce in a bid to preserve money because it braces for a doable industry-wide worth battle.

In an electronic mail to staff that was seen by CNBC, CEO RJ Scaringe stated bettering the corporate’s working effectivity should be a “core goal.” The corporate is specializing in ramping up manufacturing of its R1 vans and the EDV supply vans it builds for Amazon, in addition to on improvement of its upcoming smaller R2 automobile platform.

Scaringe stated that the cuts wouldn’t have an effect on manufacturing jobs at Rivian’s manufacturing facility in Illinois.

Rivian went public through a profitable preliminary providing in late 2021, elevating almost $12 billion. However the California-based automaker’s shares have misplaced almost 90% of their worth since, main the corporate to rethink its enlargement plans as it really works towards profitability. Latest worth cuts by Tesla and Ford Motor have led to considerations that different automakers could also be compelled to scale back costs on EVs amid rising competitors within the area.

Rivian had about $13.8 billion in money remaining as of the top of September, after posting losses of $5 billion by means of the primary three quarters of 2022. The corporate stated final month that it fell barely wanting its purpose of manufacturing 25,000 automobiles in 2022.

Rivian will report its fourth-quarter and full-year outcomes after the U.S. markets shut Feb. 28.

Particulars of Scaringe’s electronic mail have been first reported by Reuters. The corporate has about 14,000 staff.