The new American electric car maker will cut 6% of its workforce, or more than 800 jobs.
Launching a new brand is not easy. So imagine being in the middle of an unexpected economic storm. This is what is happening with Rivian, the American manufacturer of electric vehicles, which began deliveries at the end of 2021 (and the image of the R1T and R1S SUV).
So the manufacturer will reduce his labor force. RJ Scaringe, the company’s boss, made this known in his internal message, broadcast by AFP. 6% of jobs will be cut, or about 840 positions. The boss explains that Rivian must continue to grow, without additional funding, while the brand made a spectacular IPO last season, taking advantage of investors’ enthusiasm for the electric car and a surprising order of Amazon, which plans to buy 100,000 electric vehicles. from Rivian.
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But since then, the brand has struggled to increase its production levels, not helped by the shortage of electronic components, and the economic situation has become more difficult. In the first half, Rivian produced less than 8,000 vehicles, while it is expected to assemble 25,000 in 2022.
RJ Scaringe explains: “In the past six months, the world has changed significantly, where inflation has reached a record high, interest rates are rising rapidly and commodity prices continue to rise, all of which have contributed to the decline of markets. “.
So it’s harder for brands to get new capital, so they have to save money. RJ Scaringe reported that the product plan has been simplified to better spend money.