Rivian lays off 6 percent of its workforce as it struggles with EV production

As expected, electric pickup maker Rivian is laying off 6 percent of its 14,000 employees to boost production without raising additional funds. The Wall Street Journal has called. The company has a pre-order backlog of 71,000 vehicles for its R1T and R1S electric pickups and SUVs, but has had to halve its 2022 production forecast to 25,000 vehicles.

Rivian is also concerned about raising cash in the current economic environment. “The world has changed dramatically over the last six months, with inflation hitting record highs, interest rates rising rapidly and commodity prices continuing to rise – all of which have contributed to the tightening of global capital markets,” Chief Executive RJ Scaringe wrote in a statement seen by the WSJ.

With investors like Ford and Amazon helping to raise $12 billion, Rivian is one of the best-funded EV startups out there. However, the company is in a sticky state, trying to ramp up production enough to finally generate revenue after building a factory in Illinois. It also plans to accelerate development of a more budget-oriented electric vehicle called the R2 and build a second $5 billion factory for that model in Georgia.

Another EV startup struggling with production is Faraday Future, which again delayed the launch of its first EV, the FF91. The company said it needed to raise an additional $325 million in cash to fund operations through the end of the year.

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Russell Falcon

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