In an effort to prepare for the EV price war, Rivian is laying off 6% of its workforce. This measures will help preserve its cash reserves.
Rivian founder and CEO R.J. Scaringe has confirmed that the factories producing the R1T, R1S, and Amazon-commissioned EV delivery vans are unaffected.
Improving Rivian's operating efficiency and reaching profitability are core objectives of the company, and the layoffs are an effort to reach these goals.
Rivian still plans to build a new $5 billion manufacturing facility in Georgia, making it a critical component of the company's future.
Rivian has been losing money on every vehicle it produces and the pandemic-related supply chain problems did not help. Target production figures were missed for 2022.
Tesla and Ford have already announced price cuts for their EVs and other brands, such as Volkswagen, remain adamant about not doing the same.
As of September 30, Rivian had $13.27 billion worth of cash and cash equivalents on hand. Its market valuation has dropped 90% since going public in 2021, hitting $17.8 billion.