Car

Lost to economic headwinds, Rivian confirms layoff rumors will fire 6% of employees

Lost to economic headwinds, Rivian confirms layoff rumors will fire 6% of employees
Lost to economic headwinds, Rivian confirms layoff rumors will fire 6% of employees
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Bloomberg recently broke the news that according to people familiar with the matter, Rivian, an American electric car rookie company, plans to lay off 5% of its employees in one go because the expansion of the accelerator is too fast and there is a problem of overlapping functions. The news was confirmed on July 27, when Rivian Chief Executive RJ Scaringe sent an internal letter to employees that he expected to cut about 6% of the workforce, citing difficulties in raising funds due to inflation and higher interest rates.

 Lost to economic headwinds, Rivian confirms layoff rumors will fire 6% of employees

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RJ Scaringe is preparing to kick off a layoff plan that will lay off hundreds of its more than 14,000 employees, or 6% of its more than 14,000 employees, in response to a number of general economic headwinds, Reuters and Bloomberg reported, according to emails sent to employees by RJ Scaringe. Inflation and interest rates rose. However, production line employees at the assembly plant in Normal, Illinois will not be affected.

On July 27, Rivian shares rose 1.01% to $32.01.

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Shares of Rivian have tumbled 69% this year through July 27, as interest rate hikes and inflation dissuade investors from growth stocks with negative free cash flow, and Rivian in March raised its 2022 production target from 50,000 vehicles It was cut in half to 25,000 units, citing issues such as supply chain constraints and internal production difficulties.

According to Rivian’s production report released in early July, a total of 4,401 units (including RT1 pickups, R1S SUVs, and Amazon-built commercial van EDVs) will be produced in the second quarter (April-June) of 2022, with 4,467 units delivered, and It is optimistic that the annual production target of 25,000 vehicles will be achieved.

Rivian is scheduled to release its second-quarter 2022 earnings report on August 11, U.S. time.

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