Rivian Cuts 10% of Salaried Staff as Output Forecast Misses Expectations

[ice-capades]

Rivian Cuts 10% of Salaried Staff as Output Forecast Misses Expectations

https://www.detroitnews.com/story/business/autos/2024/02/21/rivian-cuts-10-of-salaried-staff-as-output-forecast-misses-expectations/72691371007/

 

 

Rivian Automotive Inc. revealed plans to cut 10% of its salaried workforce and set production guidance well below Wall Street's expectations as the maker of electric vehicles grapples with stagnant demand and economic turbulence.

 

The company will build 57,000 vehicles this year, roughly in line with its 2023 output, according to a statement Wednesday that also detailed fourth-quarter results. The forecast fell far short of analysts' average estimate of more than 80,000 units in 2024.

 

Rivian also said it expects an adjusted loss before interest, taxes, depreciation and amortization of $2.7 billion, guidance that was influenced by "economic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates."

 

The shares had dropped 17% to $12.78 as of 4:24 p.m. after regular trading in New York. Rivian had already tumbled 34% this year through Wednesday's close.

 

The layoffs, part of an aggressive cost-cutting effort, follow job reductions last year and in 2022. Capital expenditures this year will rise to more than $1.7 billion, Rivian said, up from a little over $1 billion in 2023.

 

The Irvine, California-based company builds two consumer EVs and a battery-electric delivery van at a sole plant in Normal, Illinois. There's a second factory in the works near Atlanta, where Rivian plans to build its first mass-market, lower-priced EV starting in 2026.

 

Rivian reported an adjusted loss last quarter of $1.36 a share, compared with an average $1.33 deficit in estimates compiled by Bloomberg. Revenue of $1.32 billion narrowly topped expectations.

 

The company lost more than $40,000 on every vehicle it delivered in the last three months of the year, more than the loss of a little over $30,000 per vehicle in the third quarter. However, that compares more favorably with the $124,000 it lost on every vehicle a year ago as its production lines were hit hard by supply chain issues.

Edited February 22 by ice-capades
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