Saudi-backed EV maker Rivian to cut 6 percent of jobs amid price war

Saudi-backed EV maker Rivian to cut 6 percent of jobs amid price war

Rivian Automotive is laying off 6 percent of its workforce in an effort to cut costs as the EV maker, already grappling with falling cash reserves and a weak economy, braces for an industry-wide price war.

For the latest headlines, follow our Google News channel online or via the app.

The company is focusing resources on ramping up vehicle production and reaching profitability, Chief Executive R.J. Scaringe said in an email to employees on Wednesday announcing the job cuts. Reuters obtained a copy of the email.

Layoffs at Rivian come amid falling EV prices kicked off by cuts made recently by Elon Musk-led Tesla and Ford Motor Co.

The price cuts by Tesla and Ford are expected to hurt EV upstarts such as Rivian, Lucid Group and British startup Arrival, which Monday said it would lay off half its staff.

Despite a blockbuster initial public offering in November 2021, Rivian’s shares have fallen nearly 90 percent from their peak that month to Tuesday’s close.

“We must focus our resources on ramp and our path to profitability,” Scaringe said in the email, in which he apologized to employees for the necessity of the cuts.

A Rivian spokesman confirmed the email was sent, but declined further comment.

Rivian is focusing