Dive Brief:
- Rivian is laying off 6% of its workforce as the EV maker works to "focus our product portfolio and drive a lower cost structure," CEO RJ Scaringe said in a letter to staff.
- The layoffs, which went into effect Wednesday, impact teams across the company's 14,000-person workforce, according to spokesperson Peebles Squire.
- Rivian's manufacturing facility in Normal, Illinois, will not be impacted by the job cuts.
Dive Insight:
Scaringe noted in a letter to staff the reduction comes as the company prioritizes concentrating its “investments and resources on the highest impact parts of our business.”
He highlighted the company's focus on ramping up production of Rivian's SUV and pickup truck models, as well as its electric vans, the model ordered by Amazon. The CEO also mentioned the continued work on its R2 EV platform, expected to launch in 2026.
The auto manufacturer missed its 2022 manufacturing targets by nearly 700 vehicles. Rivian blamed the issue on supply chain delays, as the units awaited parts or for work to be completed.
In May last year, Rivian revamped its ordering system in a bid to better meet rising demand. The car maker has struggled to meet delivery needs as orders rise and supply chain snags continue.
