CEO RJ Scaringe will address the layoffs at an all-hands meeting this Friday.
It's more bumpy roads for Rivian this week. Recently, the automaker has struggled, be it from allegations of sexual misconduct in its workplaces to brutal semiconductor shortage-related delays. Now, A letter from CEO RJ Scaringe has said he is going to address layoffs in a meeting on Friday, July 15.
"Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably," read Scaringe's letter. Rivian has already halted what it calls non-manufacturing hiring, simultaneously adopting what it also calls "major cost-down efforts."
Scaringe went on to reassure those reading the letter, seen by Reuters, saying that his company is "financially well-positioned," but that it will also need to begin "Prioritizing certain programs and stopping some." Those are the aforementioned hiring freezes and cost-cutting measures. The latter of those may worry consumers, and Rivian also says the measures include spending on materials. Rivian has recently hiked prices, which it was widely criticized for.
Still, Scaringe said the young automaker has started to "assess the size and structure of our teams" and will be "as thoughtful as possible as we consider any reductions" in staffing. "We will always be focused on growth, however, Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably," the letter continued.
Scaringe's letter leaves much in question. In truth, Scaringe says the letter was put out because media outlets beat Rivian to the punch, saying "This is not how we intended for you to hear about this." That tone does not bode well for Rivian's roughly 14,000 employees. As many as 700 of those could be laid off.
Rivian has offices in Illinois, California, Michigan, the UK, and Canada. In the last year, the company has roughly doubled in size to cover increased production capacity. That may now be seen as an overcorrection after poor delivery volumes over the last eight months.
For now, both the company and the market hold their breath. Rivian shares have not taken a drop like we saw when Ford sold out of much of the company's business, and the Rivian R1S SUV is still well on its way.
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