Rivian is shedding 10% of its salaried workforce, the EV startup introduced on Wednesday because it reported fourth-quarter and full-year earnings. It is the corporate’s second spherical of layoffs up to now yr.
The information comes amid a broader slowdown within the EV trade. Rivian has but to show a revenue on its automobiles and is underneath pricing stress from trade chief Tesla. The corporate mentioned it’s within the midst of a “company-wide cost-transformation program.”
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Rivian ramps up
California-based Rivian is without doubt one of the most promising EV startups round, however it’s removed from worthwhile. This yr it is dealing with layoffs and flat gross sales development.
“Our enterprise is dealing with a difficult macroeconomic atmosphere—together with traditionally excessive rates of interest and geopolitical uncertainty—and we have to make purposeful adjustments now to make sure our promising future,” Rivian founder and CEO R.J. Scaringe mentioned in an e mail to workers on Wednesday. “We should strategically prioritize our development areas of the enterprise, together with the launch of Peregrine and R2 in addition to investing in our go-to-market capabilities.”
The transfer additionally comes round a time when quite a few tech firms, together with Google and Amazon, are enacting layoffs as properly.
The R2 is Rivian’s upcoming compact SUV that the corporate hopes will drive extra gross sales than its present crop of enormous, costly automobiles. Peregrine is the inner identify for the agency’s next-generation EV structure.
Rivian reported its fourth-quarter and full-year earnings on Wednesday, saying that it plans to provide 57,000 automobiles in 2024, roughly the identical quantity because it manufactured in 2023.
Wall Avenue, evidently, is not proud of the dearth of development envisioned for this yr. Rivian’s share worth plummeted roughly 14% in after-hours buying and selling.
Contact the writer: tim.levin@insideevs.com