Automaker Rivian blamed supply chain issues for missing production targets.
(Photo: Reuters)
San Francisco, New York The US electric car manufacturer Rivian Automotive wants to reduce its workforce after the recent weak production figures. In order to reduce costs, around 840 of the approximately 14,000 employees are to leave the company.
Rivian must concentrate its resources on ramping up vehicle production and achieving profitability, said group boss Robert RJ Scaringe on Wednesday in an email to employees obtained by Reuters.
At the beginning of the year, the company admitted that it had just missed its already significantly reduced production target for 2022. The company manufactured 24,337 vehicles last year.
By mid-2022, Rivian had halved its production target from 50,000 to 25,000 vehicles. The Tesla competitor blamed supply chain issues for the miss. In addition, the e-car manufacturers are threatened with an industry-wide price war after Tesla recently significantly reduced its prices.
Most recently, Rivian suffered a bloodletting from top executives. Longtime employees who left the company included Randy Frank, vice president of body engineering, Steve Gawronski, responsible for parts purchasing, and general counsel Neil Sitron. Rivian also lost its head of communications, Amy Mast, to Ford. Industry insiders consider the concentrated departures to be a warning signal.
Rivian had already declared in December that it would put the plan, announced in September, to build electric vans together with Mercedes-Benz Vans on hold. Rivian had announced that the future focus would be on its own customers and products.
Observers considered the step to be a consequence of the growing pressure to save within the company. At home in Illinois, Rivian is struggling with heavy losses from increased material costs and supply problems. From January to September 2022, Rivian posted a net loss of over $5 billion.
At the end of February, the company intends to present the results for the fourth quarter and the full year 2022. The stock was up 1.6 percent on Wednesday.
With material from Reuters.
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