EV struggle
The American Rivian is again cutting hundreds of jobs. The brand, which hopes to make life difficult for Tesla, among others, is struggling with stagnant demand and economic turbulence.
Once again, an ambitious major player in the electric car market is cutting its workforce. Polestar recently announced that it would be saying goodbye to 15 percent of its workforce and now Rivian is putting an end to no less than ten percent of its workforce.
It is not immediately clear how many employees are affected. According to figures from a year ago, the American company still had 14,000 employees. However, significant job cuts were also announced last year and in 2022 to save costs.
Rivian expects to build approximately 57,000 vehicles this year. This is more or less in line with production in 2023, the company has said. However, this forecast falls far short of the average analyst estimate. They had expected more than 80,000 cars by 2024.
“We firmly believe in the full electrification of the automotive industry, but recognize the challenging macroeconomic conditions in the near term,” Rivian CEO RJ Scaringe said in a statement.
Financially, his company was also unable to complete the picture last quarter. Rivian lost more than $40,000 on each vehicle it delivered in the last three months of the year, up from the loss of just over $30,000 per vehicle in the third quarter. This means that Rivian has significantly reduced its losses compared to a year ago. At the time, Rivian was still experiencing problems in its supply chain.
Rivian is currently selling the R1T and R1S and will soon be pulling the curtain on a smaller model: the R2.
– Thanks for information from Autoweek.nl