Rivian CEO RJ Scaringe will hold a meeting with employees on Friday to discuss the upcoming layoffs and restructuring within the company. Scaringe will also talk about how the some programs within the company will be suspended and other departments restructured.
Despite the bad news, Scaringe said in the email that the company is still “financially well positioned,” but that it needs to prioritize some programs and suspend others altogether. As of March 31, 2022, Rivian had $17 billion in cash or cash equivalents on hand to fund their future growth, which includes spending $5 billion to build their second manufacturing facility in Georgia in 2025.
The details were included in an email sent to employees that was shared with Reuters.
As we reported earlier this week, the layoffs will be centered around non-manufacturing jobs, and will total about 5% of their current workforce, or about 700 jobs. Scaringe said in the email they will be “as thoughtful as possible as we consider any reductions” in headcount.
As for the future, Scaringe added in the email that the company is still focused on ramping production of the R1T, R1S, and Electric Delivery Van (EDV). Efforts will also be put towards bringing their next generation of electric vehicles, known as the R2 series, to production once their new facility is built in Georgia.
Rivian plans to announce their Q2 2022 earnings results on August 11, 2022.