Rivian slashes 10% of staff following $2.7B 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.

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