Rivian will lay off 6% of its workers to optimize its economy

The economic environment that revolves around various car manufacturers is not the most optimal. A few weeks ago we were able to talk about the important dismissal of almost 800 workers by Arrival. Now, Rivian announces that it will carry out the elimination of 6% of its current workforce to balance the current economy of the company, which is not in its most buoyant stage. Additionally, new production plans will also be presented for the coming years in which expenses and investments will be simplified, as well as an increase in the manufacture of its electric vehicles.

These cuts were presented by the company’s own CEO, RJ Scaringe, who placed much of the blame on rising inflation, higher interest rates and the ever-increasing prices in the acquisition of raw materials fundamentals, which has directly affected the economic capacity of the company.

The director justified himself in his presentation by assuring that this will be vitally important in continuing to fund future developments for Rivian without requiring external financial support. Among its new approaches will be a more streamlined roadmap for possible future electric models, and focusing all its efforts on environments where the greatest return on profitability can be deployed.

The 6 percent reduction in its workforce will be divided among the company’s locations in Michigan, California, the United Kingdom and Canada; on the Normal manufacturing plant the cuts will not affect manufacturing operations workers. The brand currently has a total workforce of around 14,000 people, which this cut would suppose the elimination of a total of 840 workers. Scaringe, in a recent statement, publicly apologized to workers affected by the cut: “For those leaving Rivian, I’m sorry.”

First Rivian R1S delivered
These cuts will mean the dismissal of 840 workers

All workers affected by these dismissals will be compensated with 14 paid weeks, as well as medical insurance sealed until the end of this year. With this, from Rivian they hope to be able to expand the production of their, for now, only two models for sale, the Rivian R1T and the Rivian R1S, as well as the exclusive Amazon product, its electric delivery van or ADV. From the firm they aspire to be able to reach a total of 25,000 units of their electric cars by the end of 2022 and reach 150,000 registrations in 2023.

In recent weeks, the CEO of Tesla, Elon Musk, assured that both Rivian and Lucid were heading directly towards bankruptcy, mainly due to very delicate economies on which they should carry out certain cuts and reorganizations so that they were profitable to long term.

Today, the products offered by Rivian continue to attract strong interest among the brand’s potential customers, although, in the coming years, the North American firm expects to increase its range of vehicles with new sizes and purposes. On August 12, the firm will present its financial results for the second quartersomething that could lead to a much clearer picture of Rivian’s current economic situation.

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