Electric cars: Rivian cuts 6% of its workforce

Electric cars: Rivian cuts 6% of its workforce

New York (awp / afp) – Rivian, which has been struggling to catch up since delivering its first electric cars last year, will cut its workforce by 6%, which equates to around 840 positions, its boss announced on Wednesday. internal message seen by AFP. The American manufacturer’s production teams will not be affected, says RJ Scaringe.

But the American company “must continue to grow and grow without additional funding,” he says. “In the past six months, the world has changed significantly, with inflation reaching a record high, interest rates rising rapidly and commodity prices continuing to rise, all of which have contributed to a difficult financial market”, explains Mr. Scaringe.

In this context, Rivian can no longer raise new capital easily and must focus on its most important projects. Rivian, which focuses on building pick-ups, SUVs and electric cars, started production of its first commercial vehicles last September, a few weeks before the dramatic IPO.

Driven by shareholder enthusiasm for the electric car industry, and with Amazon’s commitment to buy 100,000 of its cars by 2030, its stock had exploded. The group was worth more on the stock market than Ford or General Motors. But hampered by logistical challenges, the fledgling company has since struggled to speed up its production.

It currently employs about 14,000 workers, a spokesman for the AFP news agency told AFP.