Rivian cuts 6% of labor power; Illinois manufacturing facility is not going to be impacted

Rivian Automotive Inc. stated it’s chopping its work power by 6 p.c as a part of a restructuring course of to raised align its head rely with enterprise priorities, however it’ll spare its Regular, In poor health., manufacturing facility of job cuts.

The electrical automobile startup has struggled to extend manufacturing of its R1T pickup and the newly launched R1S SUV and Amazon business vans due to components shortages, together with semiconductors. Manufacturing improved within the second quarter to 4,401 autos from 2,553 within the first quarter.

“Immediately we introduced the tough resolution to cut back the dimensions of the Rivian workforce by roughly 6 p.c,” a Rivian spokesperson stated Wednesday.

“This resolution will assist align our workforce to our key enterprise priorities, together with ramping up the buyer and business automobile packages, accelerating the event of R2 and different future fashions, deploying our go-to-market packages and optimizing spend throughout the enterprise.”

The automaker has stated whole head rely is about 14,000 earlier than the cuts.

Rivian’s R2 platform is for a brand new era of autos that may slot beneath the R1 client autos that begin above $65,000. The R2 platform shall be constructed at a future manufacturing facility in Georgia.

Below Rivian’s severance program, laid-off workers will obtain 14 weeks of pay, well being care via the tip of the 12 months, their subsequent quarterly fairness vesting and job placement help.

“We’re deeply grateful for every departing workforce member’s contribution in serving to construct Rivian into what it’s as we speak. They are going to all the time be a part of the Rivian story and group,” the spokesperson stated.

Two weeks in the past, Rivian CEO RJ Scaringe stated in a word to workers that they might be briefed shortly on the phrases of the corporate’s restructuring, together with layoffs.

Scaringe stated within the word, which was shared with Automotive Information, that “Rivian just isn’t proof against the present financial circumstances and we want to ensure we are able to develop sustainably.”

Rivian stated in its first-quarter earnings report that it had about $16 billion in money and sufficient funds readily available to open its second U.S. plant for $5 billion in 2025.

Rivian expects to construct about 25,000 autos among the many R1T, R1S and Amazon vans this 12 months, about half the quantity it may produce if it had sufficient components, in keeping with Scaringe.

The startup’s inventory value — which closed up 1 p.c to $32.01 on Wednesday — has fallen by about two-thirds this 12 months due to Rivian’s sluggish automobile rollout and gentle monetary numbers and the declining macroeconomic setting within the U.S.