Evan J. LancasterRivian Automotive, an Irvine-based electric vehicle manufacturer, has acknowledged news reports about reductions to its staff and “restructuring” via an internal memo.
The memo, obtained by Irvine Weekly, indicates that reports regarding staff cuts at Rivian are accurate.
The memo, addressed to employees by Rivian CEO RJ Scaringe, references the need to, “stay ahead of a changing economic landscape,” in order to maintain a strategy that promotes “sustainable growth” as the company “ramps towards profitability.”
Scaringe’s memo to employees adds that the company hoped, “these very sensitive and complex conversations would have stayed within Rivian until we could address them more comprehensively.”
After an impressive initial public offering of more than $12 billion in November, Rivian shares sold at approximately $78 per share.
As of July 13, shares of Rivian, which is heavily backed by Amazon Inc. and the Ford Motor Company, were trading at $30.57.
Moving forward, Scaringe expects Rivian to continue with the working to enhance its R1 and EDV models — the R1 is a pickup truck and the EDV is an electric delivery van, and move toward developing the R2.
“As a result, we’ve implemented changes across Rivian, including prioritizing certain programs (and stopping some), halting certain non-manufacturing hiring and adopting major cost down efforts to reduce material spend and operating expenses. We also began the process of aligning the organization as a whole to ensure we are as focused, nimble and efficient as possible to achieve our priorities and objectives,” Scaringe wrote.
While Scaringe did not give a specific target in terms of reduction, he mentioned that more official information would be forthcoming.
“Because information is coming out unofficially, I wanted to personally address it. I’ll be sharing more this Friday at our scheduled All-Hands meeting.”
This is a developing story.
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