Rivian Confirms Layoffs in Path to ‘Profitability’; Delays R1S Deliveries to 2024
Rivian is looking to lay off around 6 percent of its workforce to help cut costs as spotted in a companywide email, and following Tesla’s recent price cuts which have effectively lodged a price war, according to Reuters.
Additionally, @The Kilowatts pointed out on Tuesday that Rivian is emailing customers to delay R1S order deliveries, noting that estimates on their orders have been pushed back to January through June 2024, from the original estimate of October through December 2023.
The news comes as Rivian was already struggling with depleting cash reserves and a tough economic landscape.
Several Top Rivian Executives Have Left the Company: Report https://t.co/lCRq31QM7N
— TeslaNorth.com (@RealTeslaNorth) January 11, 2023
Rivian is planning to allocate its resources toward ramping up vehicle production and getting to a point of profitability, according to CEO R.J. Scaringe in the email to employees notifying them of the layoffs.
“We must focus our resources on ramp and our path to profitability,” wrote Scaringe. “The changes we are announcing today reflect this focused roadmap.”
Following Tesla’s price cuts, Ford followed suit by cutting starting prices for its Mustang Mach-E.
Other automakers, especially small EV startups such as Rivian, Lucid and British company Arrival, have been expected to face tough decisions about limited cash, pricing and consumer appeal. Arrival said on Monday it planned to lay off as much as 50 percent of its staff.