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Rivian to cut its workforce by 10%, HR News, ETHRWorld

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<p>"There is a host of macro level challenges... consumers are behaving more consciously," Rivian CEO RJ Scaringe told Reuters</p>
“There is a host of macro level challenges… consumers are behaving more consciously,” Rivian CEO RJ Scaringe told Reuters

By Akash Sriram and Abhirup Roy

Rivian said on Wednesday it would cut its workforce by 10% and forecast EV production for this year that widely missed estimates, hurt by downtime for factory upgrades and slowing demand for electric vehicles due to high interest rates.

Shares of the company tumbled about 16% in extended trading after Rivian said it expects to produce 57,000 vehicles in 2024, well below estimates of 81,700 units, according to eight analysts polled by Visible Alpha. It produced 57,232 vehicles last year.

“There is a host of macro level challenges… consumers are behaving more consciously,” Rivian CEO RJ Scaringe told Reuters.

That as well as a weeks-long production downtime at its Normal, Illinois factory this year meant to improve efficiency are reflected in the full-year production target, he said.

Amazon.com-backed Rivian has been burning through cash to ramp up production of its R1S SUV and R1T pickup trucks as it spends on building a new factory in Georgia and loses thousands of dollars on every vehicle it builds.

“The effect (of interest rates) is more pronounced on more expensive vehicles of course and EVs still average higher price,” Vitaly Golomb, Rivian investor and investment banker told Reuters, adding that “a lot is riding on” the company’s smaller and cheaper R2 SUV that is…

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