Rivian is currently restructuring and with it comes lay off about 5% of its workforce. The company, however, stated that it will continue to hire in strategically important areas .
Rivian had a blockbuster IPO that saw the new electric vehicle company get valued higher than many major automakers, but things have been rough since then with Ford, one if its major backers, selling a significant portion of the shares. To turn things around, the company has a new strategy for the next 18 months, according to an internal email from CEO RJ Scaringe issued to workers, “in order to stay ahead of the shifting economic situation.” This strategy focuses on four important areas: ramping up manufacturing of its R1T and R1S vehicles, as well as electric delivery vans (EDVs), expediting development of its next-generation R2 platform, ramping up EV charging and service infrastructure, and “optimizing” costs and operating expenditures.
Scaringe informed staff that Rivian is prioritizing and discontinuing certain programs, suspending certain non-manufacturing hires, and “adopting considerable cost-cutting steps” to minimize expenses on materials and operations. Some of these measures have already occurred, such as the hiring of a new CEO in May to oversee the restructuring and alignment of the company’s operations.
Rivian employs roughly 14,000 employees in multiple locations. In the last year, the firm has nearly doubled its employees as it prepares to scale up manufacturing and begin deliveries of its R1T truck, R1S SUV, and electric delivery van, with Amazon as its first cooperate customer. The automaker also has plans to deliver 25,000 vehicles this year.
Rivian has not executed any layoffs yet. Despite the fact that it is evident from the email that Rivian’s management team has been working to determine whether or not to downsize the staff. Scaringe is anticipated to provide additional information to employees on a meeting that is to be held on Friday.