Despite a blockbuster initial public offering in November 2021, Rivian’s shares have fallen nearly 90 percent from their peak that month to Tuesday’s close.
“We must focus our resources on ramp and our path to profitability,” Scaringe said in the email, in which he apologized to employees for the necessity of the cuts.
A Rivian spokesman confirmed the email was sent, but declined further comment.
Rivian is focusing on ramping up production of its R1 trucks and EDV delivery vans for top shareholder Amazon, and launching its R2 platform, he said. “The changes we are announcing today reflect this focused roadmap.”
Irvine, Calif.-based Rivian, which has about 14,000 employees, will let go of about 840 staff in a move that will not affect manufacturing operations at its plant in Normal, Ill.
Rivian, which has been losing money on every vehicle it builds, narrowly missed its full-year production target of 25,000 vehicles last year as it dealt with supply-chain disruptions caused by the COVID-19 pandemic. It had previously halved that target.
To further conserve its cash, Rivian late last year shelved plans to build delivery vans in Europe with Mercedes-Benz. Rivian had earlier pushed back by a year to 2026 the planned launch of a smaller R2 vehicle family at the $5 billion plant it is building in Georgia.
Last July, Rivian, which is scheduled to report fourth-quarter results on Feb. 28, laid off staff and suspended some programs as part of a broader restructuring.
As of Sept. 30, 2022, the automaker reported having $13.27 billion in cash and cash equivalents, down from over $18 billion a year earlier.
