Rivian CEO RJ Scaringe told employees in a memo on Monday that the company will halt certain non-manufacturing hiring and take "major" cost cutting measures to reduce spending and operating expenses.
In a memo sent to employees Monday evening and reviewed by FOX Business, CEO RJ Scaringe said the company is "financially well positioned" and that its outlook "remains strong." However, he noted Rivian is "not immune to the current economic circumstances" and needs to take action to ensure it is growing sustainably.
"As a result, we’ve implemented changes across Rivian, including prioritizing certain programs (and stopping some), halting certain non-manufacturing hiring and adopting major cost down efforts to reduce material spend and operating expenses," he explained. "We also began the process of aligning the organization as a whole to ensure we are as focused, nimble and efficient as possible to achieve our priorities and objectives."
While the memo did not get into any specifics, Scaringe emphasized that Rivian would be as "thoughtful as possible" in considering any workforce reductions.
"Every decision about our team is being assessed through the lens of our strategic priorities, not as a mechanism to simply reduce costs," he added. "Our team will continue to grow in support of our production ramp and product roadmap."