Electric car maker Rivian Automotive is cutting personnel costs due to stuttering demand and temporary factory closures. A total of 10 percent of jobs will be lost, he said Tesla-Rival on Wednesday with. In addition to falling customer orders due to increased interest rates, the company cited downtime due to factory renovations as reasons.
Rivian plans to produce 57,000 vehicles in the current fiscal year, well below the 81,700 units expected by analysts. Last year, 57,232 cars rolled off the assembly line. “We firmly believe in the complete electrification of the automotive industry, but recognize the difficult macroeconomic conditions in the short term,” said CEO RJ Scaringe (41).
In response to the report, Rivian shares recently fell by around 14 percent in premarket US trading.
The Amazon-backed car manufacturer records a loss on every vehicle sold. However, the company expects to record its first quarter with a positive gross margin later this year.