Rivian is shedding 10% of its salaried workforce in a bid to chop prices in an more and more powerful marketplace for electrical automobiles, placing much more strain on its future, extra reasonably priced EV known as the R2. A restricted variety of non-manufacturing hourly staff may also be minimize, founder and CEO RJ Scaringe stated in a companywide e mail.

That is the third spherical of layoffs for the EV firm since July 2022 when Rivian minimize 6% of its workforce. The corporate minimize one other 6% of jobs in February 2023.

The corporate greater than doubled the variety of EVs it constructed and shipped in 2023 in comparison with 2022. However Rivian nonetheless misplaced greater than $5.4 billion for the yr, and introduced Wednesday that it solely expects to construct the identical quantity — 57,000 — electrical automobiles throughout all of 2024.

Because of this, Rivian says it expects to lose, on an adjusted foundation, round $2.7 billion in 2024, and has determined to “proceed its company-wide value transformation program.” That features adjustments to the design and engineering of its automobiles, making manufacturing extra environment friendly, and shedding extra staff. The corporate stated it expects capital expenditures to succeed in $1.75 billion in 2024— an uptick from the $1.03 billion it spent final yr that can be pushed by extra funding in its next-generation applied sciences, its Georgia manufacturing unit and go-to-market operations.

The corporate’s manufacturing and revenue loss steerage mixed with the layoffs pushed Rivian shares down greater than 15.6% in after-hours buying and selling.

“Our enterprise is dealing with a difficult macroeconomic setting — together with traditionally excessive rates of interest and geopolitical uncertainty — and we have to make purposeful adjustments now to make sure our promising future,” founder and CEO RJ Scaringe stated in an e mail to the corporate. “We should strategically prioritize our development areas of the enterprise, together with the launch of Peregrine and R2 in addition to investing in our go-to-market capabilities.”

Rivian reported Wednesday fourth-quarter income of $1.3 billion greater than double the $663 million it generated in the identical interval of 2022. On a full-year foundation, Rivian reported income of $4.4 billion, up from $1.66 billion in 2022. The vast majority of income got here from the sale of its EVs. It introduced in about $39 million within the fourth quarter and $73 million for the complete yr from the sale of regulatory credit.

This story is growing. Test again for updates.