Rivian to address layoffs at Friday meeting, Tesla to cut 229 jobs

July 12 (Reuters) – Electric truck maker Rivian Automotive (RIVN.O) will temporary staff on Friday on potential layoffs and plans to droop some packages as a part of a broader restructuring, Chief Executive R.J. Scaringe mentioned in an e 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 had 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” in regards to the economic system and that the corporate wanted to cut employees by about 10%. learn extra

In his e 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 certain programs (and) stopping some.”

Rivian had $16 billion in money at the top of the primary quarter and has instructed traders it had sufficient money available to open its second U.S. plant for $5 billion in 2025. learn extra

Rivian additionally has halted some non-manufacturing hiring, whereas “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 might be “as thoughtful as possible as we consider any reductions” in worker head rely.

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

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