Electric vehicle startup Rivian, which has announced a future factory in Georgia, is considering hundreds of job cuts amid a turbulent economy and struggles with supply chain issues, according to a report by Bloomberg News.
California-based Rivian had ramped up hiring in recent months as it brought its R1T truck, R1S SUV and delivery vans into production. Bloomberg, citing unnamed individuals, reported Monday that the company could cut about 5% of its more than 14,000-member workforce. That would be about 700 jobs.
Bloomberg reported the contemplated cuts are said to be directed at roles not in EV production, and that an announcement could come in a matter of weeks.
Rivian has not confirmed the plans and did not immediately return a request for comment Tuesday from The Atlanta Journal-Constitution.
Tesla, Facebook and a number of tech companies have warned of job cuts amid an economy clouded by inflation, high energy costs, a bearish stock market and efforts by governments to fight rising prices.
It’s not clear where Rivan’s potential cuts might be focused. Rivian has a factory in Illinois, its headquarters in California, and corporate offices across the United States and in Europe.
In December, Rivian announced plans to build a $5 billion vehicle and battery plant in Georgia about an hour east of Atlanta. The factory is expected to start production with a new vehicle, a crossover known as R2, in 2025.
Since opening with one of the largest American initial public offerings ever, Rivian’s stock has slumped as it has grappled with securing supplies of computer chips and other vital components and missed earlier production goals. The company now says it plans to build 25,000 vehicles this year.
Rivian said it produced 4,401 vehicles at its factory in Normal, Illinois, in the three months that ended in June, and delivered 4,467 vehicles to customers during that same period.
The company said it still expects to meet its 25,000-vehicle production goal for the year.
In May, Rivian CEO R.J. Scaringe told investors the company was moving past the worst of its supply chain issues.
Rivian reported about $17 billion in cash on hand at the end of the first quarter, and Scaringe said the company expects to be able to launch the new R2 model with the cash it has.
Rivian reported revenue of $95 million in the first quarter and a net loss of $1.6 billion. As a startup, Rivian is likely to burn cash until it is able to increase its production.
Rivian plans to announce its second-quarter earnings on Aug. 11.
The future Rivian factory is part of Georgia’s bet on becoming a hub for electric vehicle manufacturing, and includes a planned Hyundai Motor Group EV and battery plant near Savannah and an SK Innovation battery facility in Jackson County.
A note of disclosure
Cox Enterprises, owner of The Atlanta Journal-Constitution, owns about a 4% stake in Rivian and supplies services to the company. Sandy Schwartz, a Cox executive who oversees the AJC, is on Rivian’s board of directors and holds stock personally. He does not take part in the AJC’s coverage of Rivian.
About the Author
