Rivian Automotive Inc. (Nasdaq: RIVN) will cut about 6% of its approximately 14,000 employees, according to Bloomberg.
CEO R.J. Scaringe confirmed the Irvine EV maker’s downsizing plans in an internal memo on Wednesday, citing rising inflation, interest rates and commodity prices as current inhibitors to the company’s ability to raise funds.
“We need to be able to continue to grow and scale without additional financing in this macro environment,” Scaringe said in the memo. “To achieve this, we have simplified our product roadmap and focused on where it is most impactful to deploy capital.”
Manufacturing-operations workers in the company’s Illinois factory will not be affected by the cuts, the memo said.
Shares in Rivian declined 0.5% to $31.86 per share and a $28.3 billion market cap in after-hours trading.