Rivian will discuss layoffs at a meeting on Friday, and Tesla will eliminate 229 workers.

Separately, according to a filing on Tuesday, the manufacturer of electric vehicles Tesla Inc. would permanently close its office in San Mateo, California, and fire 229 workers. They were developing the Autopilot driver-assistance technology for the business.

Wednesday, July 13, 2022 | Chimniii Desk

Rivian Automotive, a manufacturer of electric trucks, will inform staff on Friday of potential layoffs and intentions to halt several programmes as part of a bigger restructure, according to a message from CEO R.J. Scaringe to staff on Monday night.

Separately, according to a filing on Tuesday, the manufacturer of electric vehicles Tesla Inc. would permanently close its office in San Mateo, California, and fire 229 workers. They were developing the Autopilot driver-assistance technology for the business.

Elon Musk, the CEO of Tesla, informed top managers last month that the business needed to reduce workers by approximately 10% because he had a "very awful feeling" about the economy.

Reuters received Scaringe's email, which stated that Rivian "is not immune to the current economic circumstances" and that "we need to make sure we can grow sustainably."

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The company has started "prioritising certain programmes (and) terminating some," he added, adding that it is "financially well positioned."

At the conclusion of the first quarter, Rivian had $16 billion in cash and had assured investors that it had enough on hand to invest $5 billion in the construction of its second U.S. factory.

In order to cut costs, Rivian has also stopped some non-manufacturing hires, according to the executive.

The business has started to "review the size and structure of our teams," according to Scaringe, and will be "as thoughtful as we can as we contemplate any reductions in staff head count."

Tesla's shares ended the session slightly down while Rivian's stock closed up nearly 1% at $30.15.

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