Employees inspect a Rivian R1T electric vehicle (EV) pickup truck on the assembly line at the company’s manufacturing facility in Normal, Illinois, US, Monday, April 11, 2022.
Jamie Kelter Davis | Bloomberg | Getty Images
electric truck manufacturer Rivian Automotive said it is laying off 6% of its workforce to conserve cash as it prepares for a possible industry-wide price war.
In an email to employees seen by CNBC, CEO RJ Scaring said that improving the company’s operating efficiency should be a “core objective.” The company is focusing on ramping up production of its R1 trucks and EDV delivery vans built for Amazonas well as on the development of its upcoming smaller R2 vehicle platform.
Scaringe said the cuts would not affect manufacturing jobs at Rivian’s factory in Illinois.
Rivian went public through a successful initial offering At the end of 2021, raised about $ 12 billion. But shares of the California-based automaker have lost nearly 90% of their value, prompting the company to reconsider its expansion plans as it works towards profitability. Recent cut prices By Tesla And ford motor has caused concern that other automakers may Forced to reduce EV prices Amid growing competition in the space.
Rivian had $13.8 billion cash balance by the end of September, after posting losses of $5 billion in the first three quarters of 2022. The company said last month that it was slightly short of its target of producing 25,000 vehicles in 2022.
Rivian will report its fourth-quarter and full-year results after the close of US markets on February 28.
The details of the email of the scarring were earlier Reported by Reuters, The company has around 14,000 employees.