According to a recent report by Automotive News, electric truck startup automaker Rivian will connect with its employees on Friday, July 15, 2022, to provide details about restructuring. The information shared at the meeting will revolve around possible layoffs and other plans to temporarily cut some programs.
The information about the upcoming meeting came directly from Rivian CEO RJ Scaringe. The CEO reportedly sent out an email, which was shared by the automaker with Reuters, alerting workers of the meeting and the upcoming plans to restructure.
As expected, Rivian hasn't been able to ramp up its EV manufacturing business as quickly as it hoped. The company is working out of the old Mitsubishi factory in Normal, Illinois, and it delivered its first R1T electric pickup trucks late last year. However, following a successful IPO, Rivian's stock has dropped significantly.
Rivian is also already making plans to open a second factory in Georgia. While it seems some reorganization and temporary measures may need to be taken to keep Rivian moving forward successfully, Scaringe mentions that the company is "financially well positioned." He writes that Rivian will look at prioritizing certain programs while stopping others.
Like Tesla, it appears Rivian will focus on cutting some jobs that aren't related to manufacturing. Scaringe adds in the email that the company will also reduce expenses with "major cost-down efforts." He writes that Rivian needs to take a closer look at its various teams in terms of their size and structure, promising that the company will be "as thoughtful as possible" in the event of layoffs.
In the end, the top priority is to ramp up electric vehicle production. Rivian currently produces the R1T, along with the R1S three-row electric SUV and the EDV delivery van for Amazon. Scaringe notes that Rivian will also continue moving forward with plans for its smaller R2 lineup of vehicles that it intends to build in Georgia.
Perhaps you saw this coming, since several situations across the globe are hindering automakers, and Tesla is going through a similar process. How do you think it will play out. Is it just temporary, or will Rivian struggle to stay afloat for years to come?
Source: Reuters via Automotive News