Electrical automobile maker Rivian introduced on Wednesday that it’s shedding 10 % of its salaried workforce to chop prices after dealing with a quarterly loss. The Amazon-backed firm reported that it misplaced $1.5 billion within the fourth quarter of 2023 and mentioned that it expects to construct 57,000 electrical automobiles in 2024, the identical quantity it constructed final yr.
“Our enterprise is dealing with a difficult macroeconomic setting — together with traditionally excessive rates of interest and geopolitical uncertainty — and we have to make purposeful modifications now to make sure our promising future,” Rivian’s founder and CEO wrote to staff in an e-mail, CNN reported. “We should strategically prioritize our development areas of the enterprise, together with the launch of Peregrine and R2 in addition to investing in our go-to-market capabilities.”
As a part of its plans to chop prices, Rivian will shut down a manufacturing facility in Illinois in the midst of this yr and can improve its manufacturing line to spice up manufacturing charges by 30 precent.The corporate is anticipated to unveil the R2, a compact SUV within the $40,000 to $60,000 vary, on March 7, though deliveries of the automobile gained’t begin till 2026.