Rivian CEO confirms layoffs could be part of restructuring to remain ‘flexible’

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Rivian will continue to hire in strategic areas even as it restructures its business and possibly cuts some jobs, according to an internal email from CEO R. J. Scaringe that was sent to employees following reports that the electric car maker was planning to lay off about 5% of their workforce. .

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The email viewed by TechCrunch contains a broad outline of the company’s earlier overall strategy for the next 18 months “to stay ahead of the changing economic landscape.” This strategy focuses on four key areas: ramping up production of R1T and R1S vehicles and electric delivery vans (EDVs), accelerating development of the next-generation R2 platform, building up the charging and servicing infrastructure for electric vehicles, and “optimizing” costs and operating costs.

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Scaringe told employees that Rivian is prioritizing and halting some programs, ending hiring of some non-manufacturing workers, and “taking major cost-cutting measures” to reduce costs for materials and operations. Some of these organizational moments have already taken place, in particular hiring a new chief operating officer in May to spearhead the restructuring and alignment of its operations.

“Our team is the core of Rivian and we try to be as thoughtful as possible when considering any cuts,” Scaringe wrote in an email.

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Rivian employs approximately 14,000 people at multiple locations, including a plant in Normal, Illinois, headquarters in Irvine, California, and facilities in Palo Alto and Carson, California, Plymouth, Michigan, Vancouver, British Columbia, Wittmann, Arizona and Woking, England.

The bustling publicly traded company has almost doubled its workforce over the past year as it set out to ramp up production and begin deliveries of its R1T truck, R1S SUV and electric delivery van, whose first customer is Amazon. While Rivian said it on track to deliver 25,000 vehicles this year. However, he had his share of struggles with supply chain problems and bottlenecks that stopped deliveries to thousands of customers.

Rivian does not lay off employees. Although it’s clear from the email that Rivian’s management is working to evaluate whether to cut staff. Scaringe said in an email that the company is working to “be as thoughtful as possible when considering any cuts.” The company will always be growth-focused, but it is not immune to current economic circumstances, adding that these decisions aim to be strategic and long-term, not just cost-cutting.

Scaringe is expected to share more information with staff at a meeting scheduled this Friday.


Credit: techcrunch.com /

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