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Rivian is laying off 10% of its salaried workforce to cut costs in an increasingly tough market for electric vehicles, putting even more pressure on its future, more affordable EV called the R2. Used to be. Founder and CEO RJ Scaringe said in a companywide email that a limited number of non-manufacturing hourly employees also will be cut.
This is the third round of layoffs for the EV company since July 2022 when Rivian cut 6% of its workforce. The company made cuts other 6% jobsS in February 2023.
The company has more than doubled the number of EVs created and sent In 2023 compared to 2022. But Rivian still lost more than $5.4 billion for the year, and announced on wednesday It expects to make just that quantity – 57,000 – of electric vehicles throughout 2024. Rivian said it plans to close its only factory in Normal, Illinois, to upgrade its manufacturing line with hopes of improving production rates by about 30%. ,
As a result, Rivian says it expects to lose about $2.7 billion on an adjusted basis in 2024, and has decided to “continue its company-wide cost transformation program.” This includes changes in the design and engineering of its vehicles, making manufacturing more efficient and laying off more employees. The company said it expects capital spending to reach $1.75 billion in 2024 — up from $1.03 billion spent last year — on its next-generation technologies, its Georgia factory of the future and go-to facilities. The market will be driven by additional investment in operations.
The company’s production and profit loss guidance combined with the layoffs pushed Rivian shares down more than 15.6% in after-hours trading.
“Our business faces a challenging macroeconomic environment – including historically high interest rates and geopolitical uncertainty – and we need to act purposefully now to ensure our promising future,” Scaringe said in an email to the company. “Changes need to be made.” “We must strategically prioritize our growth areas of the business, including the launch of Peregrine and R2, as well as investing in our go-to-market capabilities.”
Rivian Reported on Wednesday Revenue of $1.3 billion in the fourth quarter, more than double the $663 million generated in the same period of 2022. On a full-year basis, Rivian reported revenue of $4.4 billion, up from $1.66 billion in 2022. Most of the revenue came from sales of its EVs. The sale of regulatory credits generated approximately $39 million in the fourth quarter and $73 million for the full year.
The company reported a net loss of $1.5 billion in the fourth quarter, a slight improvement from the $1.72 billion loss it reported in the fourth quarter of 2022. On an adjusted basis, it reported a loss of $1.1 billion compared to a loss of $1.5 billion in the same year-earlier period.
Rivian, which makes an all-electric pickup truck, SUVs and a commercial van, has made progress on its losses per vehicle. However it still has a long way to go before it gets close to losses. The company reported it lost $43,372 per unit in the fourth quarter, a more than two-thirds improvement from a loss of $124,162 per unit in the fourth quarter of 2022.
“We took Important step towards driving Greater Capacity In 2023 Total Benefit Per Vehicle advanced By About $81,000 when comparing fourth quarter 2023 to fourth quarter 2022,” Scaringe said on an earnings call Wednesday. , As We Start 2024, I want To emphasize Our team’s Ongoing Understanding Of urgency And heyownership mentality And driving Ahead Capacity Continuous Organization.”
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