WSJ Excerpt:
Rivian RIVN 0.42%increase; green up pointing triangle is carrying out another round of layoffs affecting around 4.5% of its workforce as the electric-truck maker tries to conserve cash ahead of an expected drop in sales of electric vehicles.
More than 600 people are slated to lose their jobs, people familiar with the matter said. At the end of last year, the company had just under 15,000 employees.
“These are not changes that were made lightly,” Rivian Chief Executive Officer RJ Scaringe said in an email to staff. “With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions.”
Scaringe said the changes were made to help “profitably scale” the business as it prepares to launch its new R2 midsize SUV.
The layoffs hit employees in its vehicle operations and marketing departments, the memo said.
A month ago, the company did a smaller round of layoffs, affecting 1.5% of its workforce. It said the move was to reduce costs ahead of the launch of a more affordable sport-utility vehicle next year.
Rivian and other EV manufacturers are being hit hard by the pullback in policies that supported the adoption of electric vehicles. The end of a $7,500 federal tax credit for consumers buying EVs is expected to tank sales.
