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Rivian to cut salaried jobs, forecasts flat production for 2024

Zachary Hansen, The Atlanta Journal-Constitution on

Published in Automotive News

Electric vehicle upstart Rivian said Wednesday it will rein in costs, including by laying off some salaried workers, while maintaining its current levels of production as it looks to start construction this year on its future Georgia factory.

The California-based maker of electric trucks, SUVs and delivery vans said it will cut 10% of its salaried workforce as it faces softness in the EV sales market. The company declined to disclose how many of its 16,700 employees are salaried and could be impacted. It’s the startup’s third round of layoffs since July 2022.

Rivian expects to start vertical construction in the coming months on its $5 billion factory near Social Circle, an hour east of Atlanta, where it will build its R2 model line, a mass-market vehicle with a lower starting price that the company expects will appeal to more consumers. Rivian plans to unveil the R2 on March 7.

Rivian CEO R.J. Scaringe said he remains committed to the scale of the Georgia project, which Rivian has said will employ 7,500, despite concerns over EV demand.

“The way we’ve approached our Georgia facility is to build out the plant across two phases,” Scaringe said in a Wednesday evening call with investors. The factory will have the capability to produce 400,000 EVs, and Scaringe said each phase should represent roughly half that capacity.

As a startup in a highly competitive industry, Rivian has yet to turn a profit.

 

Rivian reported $1.3 billion in revenue during the fourth quarter, roughly the same as the third quarter and nearly double what Rivian reported in the last three months of 2022. The company’s net loss for the fourth quarter was $1.6 billion, its highest quarterly loss in 2023. But Rivian narrowed its loss by 12% compared to the last three months of 2022.

Rivian reported $4.4 billion in revenue and $2.3 billion in net losses in 2023. The company finished the year with $7.9 billion in cash and cash equivalents.

The company assembled 17,541 plug-in vehicles at its Illinois plant during the three months that ended in December, up about 8% compared to last year’s third quarter. The company produced 57,232 EVs in 2023, exceeding its annual production goal by more than 3,000.

Despite steadily increasing production over the past two years, Rivian forecast that production will be flat this year as it shifts its focus to various cost-cutting measures. Rivian said it will again produce 57,000 EVs in 2024 while cutting manufacturing costs.

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