Electrical automaker Rivian is contemplating shedding round 5 % of its 14,000 staff, or round 700 folks, in line with a report from Bloomberg. The report notes that, whereas nothing has been formally determined or introduced but, the corporate is especially trying to take away jobs that had been added because it scaled up and that aren’t concerned in manufacturing.
Reached for touch upon the report, Rivian spokesperson Miranda Jimenez mentioned that the corporate doesn’t have something so as to add at the moment. And Bloomberg mentioned it might be a number of weeks earlier than an official announcement.
This information comes at an vital time for Rivian. The corporate is simply beginning to ramp up manufacturing of its pickups, SUVs, and supply vans for Amazon. In its most up-to-date earnings report, the corporate mentioned it had produced around 2,553 vehicles, delivered 1,227, and was nonetheless planning on having made 25,000 by the top of the yr. (The corporate will doubtless be together with up to date manufacturing numbers in its Q2 earnings report, due on August eleventh.) Bloomberg notes that Rivian has huge money reserves, however the firm additionally misplaced an unimaginable sum of money final quarter: round $1.59 billion.
If Rivian really is contemplating substantial layoffs, it isn’t alone. We’ve seen several tech companies let go of enormous percentages of their workers in current months, and fellow electrical automaker Tesla has announced plans to chop 10 % of its workforce. Nevertheless, that’s not notably uncommon for Tesla, and that firm sells hundreds of thousands of cars per quarter. Whereas Tesla is not any stranger to delays, it has confirmed that it may well get autos off the road in mass portions. For Rivian, which has virtually 200,000 preorders based mostly on its final numbers (half of which are from Amazon), that functionality continues to be in query.