Vehicle Manufacturer Makes MASSIVE Cuts As Company Struggles To Stay Afloat
(TargetLiberty.org) – A leading electric vehicle (EV) manufacturer has just let hundreds of its workers go. Despite the Biden administration’s push towards green transport, it seems breaking into the market is still a struggle, and the growing economic crisis isn’t helping, either.
Rivian is cutting 6% of its workforce as it shifts its focus towards ramping up production.
Layoffs seem to be a growing trend among automakers, as companies like Ford cut jobs in their internal combustion engine segment to focus on electric vehicles.
— Andrew Aziz (@BearBullTraders) July 29, 2022
Last Thursday, Rivian Automotive, Inc laid off over 800 of its 14,000-strong workforce, citing high inflation, rising commodity prices, and steep hikes in interest rates as factors that have left the company struggling. Founder and CEO RJ Scaringe said the business required the layoffs if it’s going to see “sustainable growth” moving “towards profitability.” The enterprise certainly isn’t profitable right now. Although the brand benefited from a 2019 Amazon order for 100,000 electric delivery trucks, it reported a loss of $1.6 billion in the first quarter of the year and revenue of just $95 million. Stock shares are down 67% from the start of 2022, and the company has attempted to raise prices on its already expensive vehicles — a Rivian electric truck starts at around $80,000 — but backed down when customers objected.
The terminated staff received notification early last month and will get 14 weeks of severance pay and health insurance coverage until the end of the year. Will the layoffs be enough to save the company, though? Enthusiasts have called Scaringe “Elon Musk’s nemesis,” but Musk speculated Rivian is heading for bankruptcy. That isn’t wild conjecture either, with just 25,000 orders and a factory geared up to make 150,000 vehicles annually.
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