Rivian to address layoffs at Friday meeting, Tesla to cut 229 jobs
Electric truck maker Rivian Automotive will brief employees on Friday about potential layoffs and plans to suspend some programs as part of a broader restructuring.
Electric-car maker Tesla Inc. will permanently close its office in San Mateo, Calif., and lay off 229 employees.
Tesla CEO Elon Musk told top managers last month that he has a "super bad feeling" about the economy and that the company needs to cut staff by about 10%.
"Rivian is not immune to the current economic conditions and we need to ensure that we can continue to grow," Scaring said in his email.
"Financially in good shape," he said, but that "prioritizing certain programs has started to prevent some."
Rivian had $16 billion in cash at the end of the first quarter and has told investors that it will have its second U.S. project in 2025. That's enough cash to open the plant for $5 billion.
Rivian has also halted some non-manufacturing hiring, while "adopting major cost-down efforts" to reduce expenses, he said.
Scaringe said the company has begun "assessing the size and structure of our teams" and will be "as considerate as possible" in employee head count.
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