Rivian Automotive, a manufacturer of electric trucks, announced that it will lay off 6% of its employees in preparation for a possible price war throughout the industry.
CEO RJ Scaringe stated that improving the company’s operational efficiency must be a “core objective” of an email to employees. The company is concentrating on developing its upcoming smaller R2 vehicle platform, as well as increasing production of its R1 trucks and Amazon-built EDV delivery vans.
According to Scaringe, manufacturing jobs at Rivian’s Illinois factory would not be affected by the cuts.
Nearly $12 billion was raised during Rivian’s successful initial public offering at the end of 2021. However, the automaker’s shares have lost nearly 90% of their value since then, forcing the business to reevaluate its expansion strategies as it strives for profitability. Concerns have been raised regarding the possibility that other automakers will be compelled to lower the prices of EVs as a result of the growing competition in the sector as a result of Tesla and Ford Motor’s recent price cuts.
As of the end of September, Rivian had approximately $13.8 billion in cash remaining after sustaining losses of $5 billion through the first three quarters of 2022. The company stated last month that it missed its target of producing 25,000 vehicles in 2022 by a small margin.
After the U.S. markets close on Feb. 28, Rivian will release its results for the fourth quarter and the entire year.