Electric car maker Rivian announced Wednesday it is cutting 10 percent of its salaried workforce to cut costs after posting a quarterly loss. A company backed by Amazon informed It said it lost $1.5 billion in the fourth quarter of 2023 and expects to produce 57,000 electric vehicles in 2024, the same number it produced last year.
“Our business faces a challenging macroeconomic environment — including historically high interest rates and geopolitical uncertainty — and we must make targeted changes now to secure our promising future,” Rivia’s founder and CEO wrote in an email to employees. CNN informed. “We need to strategically prioritize areas of business development, including the launch of Peregrine and R2, as well as investing in our go-to-market capabilities.”
As part of its plans to cut costs, Rivian will close a factory in Illinois by the middle of this year and upgrade its production line to increase production rates by 30 percent. opening is expected The R2, a compact SUV priced between $40,000 and $60,000, on March 7, though deliveries of the vehicle won’t begin until 2026.
