Manufacturer of electric vehicles Rivian Automotive Inc. plans to brief employees on Friday potential layoffs and plans to suspend some programs as part of a broader restructuring, CEO RJ Scaringe said in an email sent to employees Monday night.
The company has struggled this year to ramp up production at its plant in Normal, Illinois, and that has seen share price has fallen by more than two-thirds since early January after Rivian cut its production plan through 2022.
In an email the company shared with Reuters, Scaringe said the company was in a “good financial position” but that it had begun to “prioritize certain programs (and) stop some.”
Rivian has also stopped non-manufacturing hiring while “undertaking serious cost-cutting efforts” to cut costs, he said.
Scarringe said the company had begun “assessing the size and structure of our teams” and would “consider any reductions” in headcount “as carefully as possible.”
Rivian had about $16 billion in cash at the end of the first quarter and told investors it has enough money to open its second $5 billion U.S. plant in 2025.
In an email to employees Monday, Scoringe reiterated that the company’s priorities include ramping up production of the R1 electric truck and SUV, as well as the EDV electric van it is building for investor and strategic partner Amazon.
Rivian is also focusing on developing the smaller R2 series, which it plans to build at a new plant in Georgia, Scaringe said.
Regarding the ongoing restructuring and possible layoffs, he said: “Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably.”