Rivian Is In Trouble

Estimated read time 2 min read

Layoffs are on the horizon, again.

Despite being a media darling and getting some wondrous breaks when it first launched, Rivian Automotive is now facing some increasingly rough waters. The latest hit for the startup automaker comes via Reuters, which reports a 6% workforce reduction is coming down the pipeline.

Find out which former muscle car factory is becoming a mushroom farm here.

This move is to cut costs for the company, which has been struggling with bizarre issues like a bedbug infestation, increasing production costs, and loose fasteners triggering a huge recall. At the end of the day, production figures haven’t been as rosy as once projected, demonstrating yet again that launching a new automaker in today’s industry is a formidable undertaking.

According to Reuters, Rivian is dealing with dwindling cash reserves as the economy weakens. Complicating matters further is electric car the price war started by Tesla and being answered in kind by Ford. The combination is placing considerable stress on Rivian.

Focus inside the company is on ramping up production, something which is badly needed after suffering setbacks, and becoming profitable. Any manufacturer should have these goals set when starting out, so this really isn’t shocking. However, Reuters obtained an internal email from Chief Executive R.J. Scaringe, who said attaining these objectives isn’t possible without layoffs.

Last summer, Rivian was planning to lay off hundreds of workers. Reports on the workforce reduction concluded the automaker had expanded far too quickly, running into operational problems as a result. Surely the loads of media praise, which likely helped funnel more investment capital to the company, helped fuel the situation. Attitudes are beginning to cool on EVs and their future, although the fire is far from extinguished.

Even with the passion surrounding EVs, the future for Rivian seems rather uncertain. At least it’s faring better than British EV startup Arrival, which announced Monday it’s slashing half its staff. Rivian has a deal to supply trucks and delivery vans to Amazon, which might be why it’s not faring worse, but as the EV market takes a hit from the stalling economy, things could change in a heartbeat.

Source: Reuters

Images via Rivian Automotive

Steven Symes https://writerstevensymes.com/

Steven Symes is an accomplished automotive journalist with a passion for all things related to cars. His extensive knowledge and love for the automotive world shine through in his writing, which covers a diverse range of topics.

You May Also Like

More From Author


Add yours
  1. 1
    The Auto Wire

    […] vehicles are designed for different tasks and there’s no shame in admitting that. Trucks are made for hauling large and/or dirty things around. And while C7 Corvettes do have a surprising […]

  2. 2
    The Auto Wire

    […] we move into February things are getting spicy in the auto industry. Among today’s stories are people camping out at a car dealership, Nissan is […]

Comments are closed.