Electric truck maker Rivian Automotive will transient staff on Friday on potential layoffs and plans to droop some applications as a part of a broader restructuring, Chief Executive R.J. Scaringe mentioned in an electronic mail despatched to staff on Monday night.Separately, electric-car maker Tesla Inc will completely shut its workplace in San Mateo, California, and can lay off 229 staff, a submitting confirmed on Tuesday. They have been engaged on the corporate’s Autopilot driver-assistant system.
Tesla Chief Executive Officer Elon Musk final month instructed prime managers he had a “super bad feeling” concerning the economic system and that the corporate wanted to chop employees by about 10%.
In his electronic mail, which was shared by the corporate with Reuters, Scaringe mentioned, “Rivian is not immune to the current economic circumstances and we need to make sure we can grow sustainably.”The firm, he mentioned, is “financially well positioned,” however that it has begun “prioritizing sure applications (and) stopping some.
“Rivian had $16 billion in cash at the end of the first quarter and has told investors it had enough cash on hand to open its second U.S. plant for $5 billion in 2025.Rivian also has halted some non-manufacturing hiring, while “adopting major cost-down efforts” to scale back bills, he mentioned.Scaringe mentioned the corporate has begun to “assess the size and structure of our teams” and will probably be “as thoughtful as possible as we consider any reductions” in worker head depend.Rivian’s inventory closed up about 1% at $30.15, whereas Tesla’s shares ended the session marginally decrease.(Reporting by Paul Lienert in Detroit, Hyunjoo Jin in San Francisco and Chavi Mehta in Bengaluru; modifying by Jonathan Oatis, Aurora Ellis and Sriraj Kalluvila)
Source: www.financialexpress.com”