This US Car Maker Now Announces Unexpected Layoffs

February 22, 2024

This US car maker now announces unexpected layoffs as demand takes a sharp plunge, the company said during its fourth quarter results.

Rivian said on Wednesday it would cut its workforce by 10% and forecast EV production this year that widely missed estimates, hurt by downtime for factory upgrades and slowing demand for electric vehicles due to high interest rates.

Shares of the company plunged nearly -17% in extended trading after Rivian said it expects to produce 57,000 vehicles in 2024, well below estimates of 81,700 units, according to eight analysts polled by Visible Alpha.

The company produced a total of 57,232 vehicles last year.

Rivian Automotive, Inc., is an American electric vehicle manufacturer and automotive technology and outdoor recreation company founded in 2009.

Rivian produces an electric sport utility vehicle and pickup truck on a “skateboard” platform that can support future vehicles or be adopted by other companies.

“We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” CEO RJ Scaringe said in a statement on Wednesday.

Amazon-backed Rivian has been burning through cash to ramp up production of its R1S SUV and R1T pickup trucks as it spends on building a new factory in Georgia and loses thousands of dollars on every vehicle it builds, reports CNBC.

The company’s cash burn comes at a time when demand for EVs has slowed, with Tesla CEO Elon Musk warning that high interest rates are making cars unaffordable.

Rivian’s cash and cash equivalents were $7.86 billion at the end of the December quarter, compared with $7.94 billion in the preceding three-month period.

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Also Read: A Famous Restaurant Chain Now Closes 4 Locations in Florida

Other Economy News Today

Another popular restaurant now declares an unexpected bankruptcy after closing several chains in Chicago, Arizona, and California.

Etta Collective, a small chain that operates multiple concepts in Chicago, Arizona and Los Angeles has closed several restaurants and has filed for Chapter 11 bankruptcy, reports TheStreet.

The chain closed its namesake restaurant in Los Angeles last year and abruptly shut down a Chicago-area restaurant, Sophie’s, earlier this year.

Now, after defaulting on a $2.5 million loan, the company’s owner, restaurateur David Pisor, has officially made the bankruptcy filing.

Pisor’s Etta collective runs a number of different concepts including its namesake restaurants, a bakery cafe, Alston House, a high-end steakhouse, and Kari, an upscale sushi concept.

The chain also has Marilyn’s, a planned concept that has not opened.

Pisor has said that the bankruptcy filing was made in order to help the company continue to operate.

“We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender, who has agreed to work with us so that we can come out of this process even stronger than before,” Restaurant Business reported.

The bankruptcy process could include a sale of the brand as the investor John Leahy has emerged as a bidder for the company’s assets.

“Our aim is to best position the Etta brand for future success,” Pisor said in a statement.

“By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open.

As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”

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Also Read: Grocery Store With 217 Locations Now Closes For Good

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