Rivian has announced a significant restructuring of its production shifts at its manufacturing facility in Normal, Illinois. The company has decided to reduce the number of shifts from three to two starting next month, in what the company says is a strategic move to optimize production efficiency.
The changes come after Rivian announced it was laying off 10% of its salaried workforce in its Q4 and 2023 financial report.
Rivian’s Normal facility is home to approximately 8,000 employees, with the majority engaged in hourly manufacturing roles. Despite the reduction in shifts, Rivian has assured that all hourly workers will be integrated into one of the remaining two shifts, giving them the opportunity to express their shift preferences, with each shift expected to produce more vehicles than they did before.
The two shifts are scheduled to start on April 28, 2024, according to a Rivian spokesperson that spoke with WGLT.
Rivian’s decision to reduce the number of shifts at its factory comes after the automaker forecasted lower than expected growth in 2024. After exceeding its guidance and producing over 57,000 EVs in 2023 and delivering more than 50,000 during the year, Rivian said it expects to only produce 57,000 vehicles in 2024.
Rivian added a third production shift in June 2023, in response to the growing demand for its vehicles. However, with advancements in production efficiency and a strategic assessment of current market dynamics, including the impact of high interest rates on EV demand, Rivian is confident it can achieve its goal of producing around 57,000 vehicles in 2024 with two shifts. This adjustment aligns with Rivian’s broader strategy to navigate economic challenges while maintaining its commitment to innovation and sustainability.
The shift reduction announcement comes just days before Rivian will unveil its next-generation R2 vehicle. The R2, positioned as a more affordable and compact SUV option, will be built at the company’s factory in Georgia, which is still under construction, putting a potential release date for the R2 in 2026.
