Rivian is planning to cut some six percent of its workforce and today, we’re learning about what those cuts mean for workers in California. Almost 500 jobs are going away in the Golden State as Rivian works to cut costs and conserve cash amid an EV price war.
Back in early February, a report surfaced saying that Rivian would cut around 840 jobs. Now we know that 479 of those roles are in Southern California. “We must focus our resources on ramp and our path to profitability,” CEO RJ Scaringe said in an email to employees.
Four company locations in Irvine will lose a total of 204 jobs among them while three separate locations in Palo Alto will see the loss of another 240. A further 35 job cuts are happening between sites in Tustin and Costa Mesa. Bizjournals says that VP of people operations, Karen Prince, sent a letter to California employment officials saying that “This mass layoff is expected to be permanent.”
More: Rivian Recalls Nearly 13,000 Vehicles Because Of Airbag That Might Not Deploy
According to the same letter, affected employees already know. Terminations are expected to occur around April 14th, says the Mercury News.
After missing its production goal for 2022 by about 700 units, Rivian is aiming to build a total of 50,000 vehicles including the R1T, the R1S, and the Amazon Delivery Vehicle in 2023. While that seems like a plausible goal, the brand is still “bleeding cash” according to analysts. These cuts are directly aimed at reducing that wound. It’s the second round of layoffs at Rivian in the last twelve months in California. Last year, it cut some 351 workers.
On top of the cuts, the brand paused production at its factory in Normal, IL during January in an effort to improve the process. It hopes to increase output to some 200 units a week.
