Rivian Layoffs: 10% of staff cut following $2.7 billion loss, low demand

Rivian Automotive, an electric vehicle (EV) manufacturer, is reducing its salaried workforce by 10% and has revealed that its vehicle production for the year will not meet industry expectations.

What’s Happening at Rivian?

The significant operational adjustments come amid economic challenges and stagnant demand for its vehicles. Rivian is now aiming to manufacture 57,000 vehicles, which aligns with its output from the previous year. This figure falls notably short of the anticipated 80,000 units forecasted by analysts for 2024.

Rivian is projecting a loss of $2.7 billion for 2023. This forecast is influenced by various factors, including economic and geopolitical uncertainties, with a significant emphasis on the challenges posed by high interest rates.

These developments highlight Rivian’s ongoing struggle to scale production and reduce losses in a market that has shown decreasing enthusiasm for battery-powered vehicles.

“We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” Chief Executive Officer RJ Scaringe said in a statement on Feb. 21.

Impact on Canadian Staff

It remains unclear exactly how many Canadian employees at Rivian will be affected by the layoffs. Samfiru Tumarkin LLP has been contacted by numerous individuals impacted by the announcement, seeking a review of their severance packages.

Termination Agreements for Rivian Employees

In Canada, non-unionized employees at Rivian are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for video game sector staff
• Severance packages during mass layoffs

Lost Your Job? Talk To an Employment Lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.