Announcing a workforce reduction of 10%, Rivian, the electric car manufacturer, aims to trim expenses following a recent financial loss. In the fourth quarter of 2023, the company, supported by Amazon, reported a $1.5 billion deficit and projects to maintain its 2024 vehicle production at 57,000 units.
Facing economic challenges like soaring interest rates and global instability, Rivian’s CEO emphasized the necessity of immediate adjustments for the company’s future success. Priority will be given to growth sectors such as launching Peregrine and R2 models and enhancing market strategies.
To streamline operations and enhance efficiency, Rivian will close an Illinois plant by mid-year and upgrade its production line for a 30% increase in output. The unveiling of the R2, a compact SUV priced between $40,000 and $60,000, is scheduled for March 7, with deliveries slated to begin in 2026.