Rivian is one of the latest companies that is planning major cost-cutting efforts. The confusing thing is that the company was rumored to cut off 700 layoffs primarily for their non-engineering teams, and although layoffs have not yet been confirmed, the company hosted an all-hands meeting just recently.
Rivian CEO Gives a Memo Regarding Reports Saying They Were Going to Lay Off 700 People
In an article by Bloomberg, it was reported that the company was planning hundreds of staff cuts, especially in the non-manufacturing positions. In response to the reports of the job cut, Rivian CEO, RJ Scaringe, decided to write a memo to employees.
According to the story by Engadget, Scaringe noted that the news of the layoffs is not how they intended their employees to heart about the situation. He stated that they had hoped that the sensitive and complex conversations "would have stayed within Rivian" until they could address the decisions more comprehensively.
Scaringe is Expected to Say More Regarding the Company's Decision After an All-Hands Meeting
The CEO is expected to share more about their decisions after they have an all-hands meeting that is scheduled to take place shortly. Scaringe announced that the company is already pausing a number of non-manufacturing hires and that the company is trying to reduce its outlay on both materials and operating expenses.
As per Scaringe, it was noted that they will always be focused on growth but are not immune to the economic circumstances needed in order for them to sustainably grow. It was noted that Rivian was well-positioned financially and that their outlook still remains strong.
Here's What Rivian is Planning to Focus On
The CEO said that they will prioritize certain programs while halting others as the company tries to restructure certain business aspects. Earlier during the year, the company announced that it would be focusing on just a few areas for the time being.
As noted by Tech Crunch, Rivian will be focusing on increasing R1T, R1S, and electric delivery van production. The company will also be prioritizing building out EV charging and service infrastructure as well as speeding its R2 platform development and finding efficiencies for both operating expenses and costs.
Read Also: Rivian Plans Substantial Layoffs of Non-Manufacturing Employees As it Ramps Up Production for Amazon
Rivian is Planning to Achieve 600k Vehicles Manufactured a Year
The company has already almost doubled the number of employees it had over the years, reaching over 14,000 staff in total. Despite adding to its workforce, the company has still had to face certain problems, including the state of the economy and the supply chain crisis.
Aside from that, Rivian is also dealing with the delay in deliveries of the R1S SUV, which happened on multiple occasions. Although the company plans to be able to achieve 600,000 vehicles a year manufactured, it still forecasts just being able to build 25,000 EVs this year.
Related Article: Tesla Giga Berlin Becomes Region's Largest Industrial Employer! Road to 500,000 EVs Yearly?
This article is owned by Tech Times
Written by Urian B.
