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Rivian executives cited their “path to profitability” as the reason for layoffs at the electric vehicle company. The plan includes the firing of 6% of the company’s workforce. Nora Eckert reports for The Wall Street Journal:
Rivian Automotive Inc. plans to initiate another round of layoffs, the latest in the electric-vehicle startup’s efforts to preserve cash as it confronts challenges scaling its business.
In a note to employees sent Wednesday, Chief Executive RJ Scaringe said Rivian plans to trim another 6% of its workforce, mirroring a cut of the same size made last summer in response to inflationary pressures and an uncertain economic climate.
Reuters previously reported the layoffs.
Mr. Scaringe said that the Irvine, Calif., auto maker needs to give priority to its path to profitability and production of its first models, as well as development of future offerings to expand its lineup, according to the email, which was viewed by The Wall Street Journal.
He didn’t give an exact timeline of when the layoffs would occur, only that affected employees would receive an email from their managers. The company is planning an all-hands meeting for employees Friday to discuss the reductions, he said.
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