Rivian Announces Soft Production Outlook, Job Cuts for 2024

Feb. 22, 2024
Despite doubling its production and deliveries from 2022 to 2023, the company continues to struggle to turn a profit.

After three consecutive stellar quarters, Rivian Automotive may be on the downswing after announcing its Q4 and full-year 2023 results and sharing its 2024 outlook.

In Q4 2023, the company produced 17,541 vehicles, bringing its full year total to 57,232, exceeding its original production goal by just over 7,000 units. This was the fourth straight quarter of rising production, and most analysts expected executives to shoot for 80,000 in 2024. Instead, they announced the considerably lower goal of 57,000 vehicles. 

Production wasn’t the only thing slashed for the new year: 10% of Rivian’s salaried employees as well as a “limited number” of non-manufacturing, hourly employees will be laid off in the coming months. CEO RJ Scaringe called the decision “difficult” but said that the cuts, along with other measures, would help “maximize the amount of impact” the company can have. Rivian currently has 16,700 salaried and hourly employees.

This marks the third round of layoffs in recent years for the company; in February 2023 it laid off 6% of its workers, and the same amount in July 2022. Scaringe said Rivian would support those affected through various means including severance, benefits coverage and access to job placement services.

Rivian’s financials took a hit as well, although there were positives. The company generated $4.4 billion in revenue for the year, a nearly 170% increase from 2022. But, its net loss was $5.4 billion, an improvement from 2022’s $6.7 billion.

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