Rivian Automotive CEO RJ Scaringe confirmed Tuesday that the company is considering staffing adjustments, saying the company “is not immune to the current economic circumstances”, according to an internal memo seen by Bloomberg.
“We will always be focused on growth, however, Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably. We are working to be as thoughtful as possible as we consider any reductions,” Scaringe said.
The CEO added that Rivian has “halted certain nonmanufacturing hires and overall expects the team to grow as production accelerates” saying he will provide further details of the company’s plan in a meeting this Friday.
Rivian is also adopting “major” cost-cutting exercises, including reducing materials spending, the CEO said. Earlier this week, Bloomberg had already reported that the EV maker was considering hundreds of layoffs on the manufacturing team.
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Recently, Rivian announced that produced 4,401 vehicles at its manufacturing facility in Normal (Illinois) during the second quarter of 2022 and delivered 4,467 vehicles. The electric vehicle maker said the numbers are “in line with the company’s expectations, and it believes it is on track to deliver on the 25,000 annual production guidance previously provided.
Last week, RBC Capital analyst Joseph Spak released a new note reiterating the $77 price target and the Outperform rating on Rivian shares. The analyst expects Rivian to deliver 3,600 vehicles in the second quarter, slightly above the consensus estimates.
Recently, Rivian announced that opened three fast charging sites this week in Colorado and California, “the first deployments in its nationwide Rivian Adventure Network”.
In mid-June, the company unveiled its plans for a large-scale wind turbine at its Normal manufacturing campus to provide clean energy enabling new R1 vehicles to be powered by renewables for their first charge. Earlier this year, Rivian had installed a 783-kilowatt solar canopy that is scheduled to begin generating electricity later this summer.
The wind project aligns with Rivian’s strategy of adding renewable resources to parts of the country that need them most Illinois’ grid is powered by 11% renewables and aims to reach net-zero carbon emissions by 2040, 10 years ahead of the Paris Agreement, the company stated.