Rivian lays off hundreds of workers as its struggles create a $19 billion headache for Amazon and Ford

• Layoffs at EV startup Rivian started this week.

• The corporate is reducing prices amid its ramp-up in manufacturing and worries in regards to the economic system.

• Former workers publish on LinkedIn in regards to the cuts, which impacted non-manufacturing roles.

Layoffs at Rivian started in late July as the electrical car startup rushed to chop prices amid a tricky financial local weather and stress to ramp up manufacturing.

Dozens of employees who now name themselves former workers confirmed their departures on LinkedIn with the hashtag #rivianlayoffs in regards to the cuts. Rivian stated Wednesday the layoffs would have an effect on about 6% of the corporate’s 14,000 workers.

Bloomberg Information initially reported earlier this month that the startup was planning tons of of cuts. These could have a big effect on much less crucial manufacturing and manufacturing departments, in line with different reviews. A Rivian spokesperson confirmed that manufacturing roles are unaffected.

The strikes come lower than a yr after Rivian’s profitable IPO, during which the corporate raised $11.9 billion – the largest IPO of 2021. A Wall Road darling, Rivian was valued at $66.5 billion when it went public. The itemizing adopted a string of EV startups that went public, although most did so through reverse mergers with special-purpose acquisition corporations.

However Rivian’s share value has fallen in latest months amid a broader downturn in monetary markets. Within the first half of this yr, its inventory fell 75%, leading to heavy losses on paper for its traders.

Amazon introduced losses of $11.5 billion on its stake between the primary and second quarters. Throughout the identical interval, Ford misplaced $7.9 billion on its Rivian funding. Collectively, the 2 personal roughly 27% of Rivian’s excellent shares.

Rivian started promoting its first car, the R1T pickup truck, final September, beating conventional automakers like Ford and Common Motors, which later launched their very own electrical vans. After months of delay, the startup plans to begin delivery its second mainstream mannequin, the R1S SUV, as early as August. It additionally produces a supply van for Amazon.

The story continues

Rivian has struggled with a slower-than-expected manufacturing ramp-up this yr, delivering 1,227 automobiles within the first quarter and reporting 4,467 deliveries within the second quarter. The corporate is focusing on manufacturing of 25,000 automobiles this yr, half of its preliminary manufacturing forecast for 2022.

Rivian is not the one electrical car start-up to be hit by ongoing considerations in regards to the economic system, provide chain constraints, manufacturing delays and extra. Insider beforehand reported layoffs at electrical car startup Canoo and electrical truck maker Xos Vehicles.

“This transfer will assist align our workforce with our key enterprise priorities, together with accelerating shopper and business car packages, accelerating improvement of R2 and different future fashions, rolling out our leveraging packages market and optimizing spend throughout the enterprise,” Rivian’s spokesperson instructed Insider on Friday. “We’re deeply grateful for the contribution of every crew member who leaves us to assist make Rivian what it’s at present. They may all the time be a part of the Rivian story and group.”

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