Rivian Suffers Job Cuts, Factory Exempted

rivian suffers job cuts factory exempted


I mentioned that Rivian was facing job cuts during today's QOTD, and here's the skinny.


The startup automaker is reducing its headcount by 6 percent, meaning that about 840 of its 14,000 employees will be laid off. However, the plant in Normal, Illinois will be unaffected. More than 5,000 people work there building vehicles.

"Today we announced the difficult decision to reduce the size of the Rivian team by approximately 6 percent. 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," Rivian spokesperson Amy Mast said in a release. "We're deeply grateful for each departing team member's contribution in helping build Rivian into what it is today. They will always be part of the Rivian story and community."

The R2 will be built in Georgia, near Atlanta.

Those let go will get 14 weeks of pay, healthcare through 2022, job-assistance placement, and their planned equity vesting for the next quarter.

CEO RJ Scaringe had already prepped employees for this possibility with a note that included this line: "Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably."

That note made the rounds a couple of weeks ago.

Parts shortages have made it tough for Rivian to boost production, though it did increase from 2,553 units in Q1 to 4,401 in the second quarter. Scaringe has said that the company is on track to build 25,000 trucks, SUVs, and delivery vans this year -- about half of what it could do if it could get access to the necessary parts.

The first-quarter earnings report showed that Rivian had around $16 billion in cash and enough funding to spend $5 billion to open the Georgia plant, which is slated to go online in 2025.

[Image: Rivian]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

Comments
Join the conversation
2 of 16 comments
  • Cprescott Cprescott on Aug 01, 2022

    5k employees to build such a limited number of vehicles? Something is wrong.

  • Sgeffe Sgeffe on Aug 01, 2022

    I just cannot get over the doublegroupthinkspeak BS that comes out of the PR departments.


    What?! No references to “holistic synergies,” or some such twaddle?!

  • Inside Looking Out Why EBFlex dominates this EV discussion? Just because he is a Ford expert?
  • Marky S. Very nice article and photos. I am a HUGE Edsel fan. I have always been fascinated with the "Charlie Brown of Cars." Allow me to make a minor correction to add here: the Pacer line was the second-from-bottom rung Edsel, not the entry-level trim. That would be the Edsel Ranger for 1958. It had the widest array of body styles. The Ranger 2-door sedan (with a "B-pillar", not a pillarless hardtop), was priced at $2,484. So, the Ranger and Pacer both used the smaller Ford body. The next two upscale Edsel's were based on the Mercury body, are were: Corsair, and, top-line Citation. Although the 1959 style is my fav. I would love a '58 Edsel Pacer 4-door hardtop sedan!
  • Lou_BC Stupid to kill the 6ft box in the crewcab. That's the most common Canyon/Colorado trim I see. That kills the utility of a small truck. The extended cab was a poor seller so that makes sense. GM should have kept the diesel. It's a decent engine that mates well with the 6 speed. Fuel economy is impressive.
  • Lou_BC High end EV's are selling well. Car companies are taking advantage of that fact. I see quite a few $100k pickups in my travels so why is that ok but $100k EV's are bad? The cynical side of me sees car companies tack on 8k premiums to EV's around the time we see governments up EV credits. Coincidence? No fooking way.
  • EBFlex "I'd add to that right now, demand is higher than supply, so basic business rules say to raise the price."Demand is very low. Supply is even lower. Saying that demand is outstripping supply without providing context is dishonest at best.
Next