Electric truck maker Rivian Automotive, has announced it is laying off six percent of its workers in an effort to save cash as it prepares for a potential price war across the sector.
CEO RJ Scaringe said the “key aim” is increasing operating efficiency in an email to staff members that was obtained by CNBC.
The move followed a previous cut of six percent of staff last year as inflation soared.
About 14,000 people work for the company, which means more than 800 staff are under threat.
READ MORE: CLOUD PROVIDER NETAPP ANNOUNCES 960 JOB CUTS
According to Scaringe, the Illinois factory where Rivian produces its products won’t be affected by the job layoffs.
In addition to developing its next smaller R2 vehicle platform, the business is concentrating on increasing the production of its R1 trucks and the EDV delivery vans it makes for Amazon.
In late 2021, Rivian successfully floated its initial offering, raising close to $12 billion.
But shares of the California-based automaker have lost about 90 percent of their value since that point.
This has forced the business to re-evaluate its expansion plans as it strives to become profitable.
READ MORE: PAYPAL IS CUTTING 2,000 EMPLOYEES IN A COST-CUTTING DRIVE
There are worries that other manufacturers may be pushed to lower costs on EVs due to increased competition in the market as a result of recent price reductions by Tesla and Ford Motor.
After incurring losses of $5 billion throughout the first three quarters of 2022, Rivian had around $13.8 billion in cash left as of the end of September.
The business reported that it fell just short of its target of building 25,000 vehicles in 2022 last month.
Need Career Advice? Get employment skills advice at all levels of your career
After the US markets close on February 28, Rivian will release its results for the fourth quarter and the entire year.
Reuters was the first to release information regarding Scaringe’s email.
About 14,000 people work for the company.
Follow us on YouTube, Twitter, LinkedIn, and Facebook