Tesla rival Rivian and Arrival amid plans to cut hundreds of jobs

Rivian, an American electric vehicle maker and automotive technology company, reported an optimistic uptick in EV production for the last quarter, accumulating around 7,969 EVs since the beginning of production last year. At the same time, it aims to produce around 25,000 vehicles this year.

Despite the need for enlarging the work in the second half of 2022, RJ Scaringe, CEO of Rivian, has recently hinted the firm is facing its earlier production and supply chain issues.

As per reports, Scaringe sent an email to the employees hinting them about the plans for discussing potential layoffs. He also shared that Rivian plans to defer some of the internal programs for restructuring the organization.

Alike Rivian, British-based electric vehicle manufacturer Arrival is also preparing to make some internal changes for reaching scaled manufacturing of its van this year.

In a recent press release, the company offered a restructuring of its business in response to the difficult economic environment. The reason for the change is to ensure that the firm reaches the beginning of the production of the Arrival Van in Q3.

As per an official statement, Arrival has anticipated plans for restricting of the organization to empower it to deliver business priorities until late 2023 leveraging the $500M cash on hand.

The latest proposal also includes a targeted reduction of 30% in spendings across the organization and expects that it could impact around 30% of employees globally.

Although Arrival, unlike Rivian, has still not used the word layoffs, the proposal indicates that approximately 1/3rd of its staff will be impacted in some way or another.

The company will share further details of the revised business strategy at its Q2 earnings call, scheduled for the 11th of August.

 

Puja More

Puja More holds a graduate degree in Computer Science from the University of Pune. Nurturing her passion of playing with words however, Puja undertook content writing as a career path and boasts of rich experience in content production, copywriting, and digital marketing. Presently, Puja writes articles on technology, business, and healthcare for playthemusic.biz and a few similar portals.