Skip to main content

Rivian is laying off 6 percent of its employees

Rivian R1S and R1T next to each other
Rivian wants to produce 25,000 vehicles by the end of the year.

Electric automaker Rivian is laying off around 6 percent of its 14,000 employees, or around 800 people, Amy Mast, a spokesperson for the company, confirmed in an email. The company made the decision in part to speed up development on future versions of its electric trucks and SUVs, she said.

“Today we announced the difficult decision to reduce the size of the Rivian team by approximately 6%,” Mast wrote. “This decision will help align our workforce to our key business priorities, including ramping up the consumer and commercial vehicle programs, accelerating the development of R2 and other future models, deploying our go-to-market programs and optimizing spend across the business.”

This follows a report from earlier in the month that suggested the company’s leadership was looking to remove jobs that were added as it scaled up and that aren’t involved in manufacturing.

Rivian has been making changes recently in an attempt to cut costs, according to an email CEO RJ Scaringe sent to employees after reports started circulating that it was considering layoffs. A copy of this email was sent to The Verge by Rivian spokesperson Miranda Jimenez earlier this month. In it, Scaringe wrote:

We’ve implemented changes across Rivian, including prioritizing certain programs (and stopping some), halting certain non-manufacturing hiring and adopting major cost down efforts to reduce material spend and operating expenses. We also began the process of aligning the organization as a whole to ensure we are as focused, nimble and efficient as possible to achieve our priorities and objectives.

This news comes at a crucial time for Rivian. The company is just starting to ramp up production of its pickups, SUVs, and delivery vans for Amazon. In its most recent earnings report, the company said it had produced around 2,553 vehicles, delivered 1,227, and was still planning on having made 25,000 by the end of the year. (The company will likely be including updated production numbers in its Q2 earnings report, due on August 11th.) Bloomberg notes that Rivian has massive cash reserves, but the company also lost an incredible amount of money last quarter: around $1.59 billion.

Rivian isn’t the only company going through with layoffs. We’ve seen several tech companies let go of large percentages of their staff in recent months. Ford is reportedly considering laying off 8,000 workers, and fellow electric automaker Tesla has announced plans to cut 10 percent of its workforce.

However, that’s not particularly unusual for Tesla, and that company sells hundreds of thousands of cars per quarter. While Tesla is no stranger to delays, it has proven that it can get vehicles off the line in mass quantities. For Rivian, which has almost 200,000 preorders based on its last numbers (half of which are from Amazon), that capability is still in question.

Update July 27th, 5:03PM ET: This post has been updated to reflect Rivian’s announcement that it’s going through with layoffs.



Source: The Verge

Popular posts from this blog

The hidden cost of food delivery

Noah Lichtenstein Contributor Share on Twitter Noah Lichtenstein is the founder and managing partner of Crossover , a diversified private technology fund backed by institutional investors, technology execs and professional athletes and entertainers. More posts by this contributor What Studying Students Teaches Us About Great Apps I’ll admit it: When it comes to food, I’m lazy. There are dozens of great dining options within a few blocks of my home, yet I still end up ordering food through delivery apps four or five times per week. With the growing coronavirus pandemic closing restaurants and consumers self-isolating, it is likely we will see a spike in food delivery much like the 20% jump China reported during the peak of its crisis. With the food delivery sector rocketing toward a projected $365 billion by the end of the decade, I’m clearly not the only one turning to delivery apps even before the pandemic hit. Thanks to technology (and VC funding) we can get a ri

Cyber Monday Canada: Last-minute deals for everyone on your list

Best Cyber Monday Canada deals: Smart Home Audio Phones, Tablets & Accessories Wearables Laptops & PC Components Amazon products Gaming Televisions Cameras Lifestyle & Kitchen Toys & Kids Cyber Monday Canada is here, and retailers are rolling out the red carpet for customers who want to shop for everything from tech to kitchenware to games and everything in between. Unlike years past, Cyber Monday Canada deals look a bit different than normal. Instead of retailers trying to pack their stores with as many shoppers as possible, we're seeing tons of online deals that you can take advantage of from the comfort of your home. We've rounded up our favorites below, so feel free to browse through the best of what Canada Cyber Monday has to offer! This list is being updated with new Cyber Monday deals all the time, so check back often. Spotlight deals It's a Switch Nintendo Switch Fortnite Edition bundle $399.95 at Amazon It's a Switch.

Turn your Raspberry Pi into a full-blown computer with the best screens

So you've already picked up the best Raspberry Pi kit , but you want to be able to actually see things, so you'll need to find the best Raspberry Pi screen. Then, of course, you'll need to find a display to use, regardless of whether you grabbed the Raspberry Pi 4 or even the Raspberry Pi 400 . So we've rounded up the best options to give your mini computer a display worth using. Super low power GeeekPi 7 Inch 1024x600 Capacitive Touch Screen HDMI Monitor Staff Pick This 7-inch capacitive display has a 1024x600 resolution and connects via HDMI. It also only requires 500mAh of power for its backlight. There are two additional USB ports for you to take advantage of and expand and extend. Plus, you won't have to worry about meddling around with any display drivers and can just plug and play this GeeekPi monitor with your Raspberry Pi. $70 at Amazon Ultimate flexibility ASUS VP28UQG 28" Monitor 4K/UHD Flexibility is the name of the game with a Raspber

Peloton Reverses Course, Will Continue to Support Apple GymKit

Earlier this week, Peloton said that it would drop support for Apple's GymKit feature that syncs data to the Health app. Customers were unhappy with the decision and complained to the company, leading Peloton to announce a change in plans. Peloton on Thursday said that after listening to member feedback on GymKit, the integration will continue to be offered. Peloton wanted to stop offering GymKit integration in favor of the Peloton One-Tap tracking feature, but GymKit has been a key feature on the $2,500 Bike+ since its 2020 debut , and other Peloton machines since 2022. After listening to Members’ feedback about discontinuing Apple GymKit integration for Bike+, we have decided to continue offering Apple GymKit integration. As a Member-first company, we are always grateful to our Members for sharing their views. — Peloton (@onepeloton) February 16, 2024 The One-Tap tracking app does monitor distance, pace, and heart rate metrics, but only basic information is synced t