CNBC: Rivian laying off hundreds of workers amid R2 launch

[UnsungZero_OldTimeAdMan]

Because Rivian was in the news, that's all it takes. Doesn't matter if it's good news or bad, the stock will drop regardless. That's why I hate to hear anything regarding Rivian in the news.. I know the stock will be down the next day

Plus, news of oil prices dropping is never going to help anything electrified.

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[Viking80]

Because Rivian was in the news, that's all it takes. Doesn't matter if it's good news or bad, the stock will drop regardless. That's why I hate to hear anything regarding Rivian in the news.. I know the stock will be down the next day

Buy on the news, sell on the hype.

 

[mkg3]

...those let go are hurt, but those who remain are more secure.... back to my $65 break even point is with smart and fiscally responsible decisions.

Having been a part of workforce reduction decisions several times during my career, it is a fact that longer the company waits to cut, more deeper the eventual cut has to be.

As for the $65/share, Rivian won't get there on cost cuts and being fiscally responsible alone. They need to increase their addressable market and captures with new and desirable products for the customers. R2 is a start but too soon to say it's a hit or not. Just hope its not a long foul-ball or line-drive to the outfielder.

 

[Weekend at Gary’s]

According to WSJ the "service and customer organization" handles sales and marketing, not servicing of vehicles. This is a good place to make cuts at the moment while they focus on ramping up their autonomy, production and repair operations.

This distinction is important. Huge marketing push for R2. Now there is more demand than they can supply. Even if someone reserved an R2 28 months ago, Rivian still needed a marketing team to promote the brand and the launch. They could sell 200,000 in the next 18 months… if they can make that many. Marketing ramp , production .

 

[DD4ST]

From an outsider looking in (I have NO special knowledge), I interpret this as Rivian shifting from a significant push to start production of the R2 to actually selling (and servicing) them. This would indicate the company had to hire people to accelerate to get the R2 out and now don’t need as many. So certain prior tasks are done and, unfortunately for the employees, Rivian is not in a position to carry people over to the next project. So, I don’t know that I would interpret this as a sign of problems vice a normal business cycle. Again, I have no special insight into the types of layoffs, the reasons, or future plans. If someone has that, and can correct me, please chime in.

 

[ryan.ohalloran]

Not to take away from the impact on the employees affected, but the headline makes it seem worse than it is if you dig deeper. It's 2% of the Rivian workforce, which is only about 300 people out of 15,000 staff.

 

[Rksue1]

Rivian needs to push to get profitable in Q4 26. If they can sell 10+K R2's, of the highest priced trims, in Q4 and are still losing money they are going to have a problem with viability.

So let’s not forget that the CEO has a project with VW. That R&D is costing a fortune.

 

[Blackwater]

I fully expect companies to do this, even when they do well, but Rivian needs to survive first. Still sad.

Well, How much did the CEO receive for pay
Taking one for the team

 

[carsly]

So let’s not forget that the CEO has a project with VW. That R&D is costing a fortune.

...and also generating billions in one-time services revenue that might help Rivian show a book profit, but any analyst trying to dissect the health of the underlying automotive operations would back these revenues out as non-recurring.

 

[Noplacelikeloam]

Maybe because the launch is over. Now its time to focus on delivering the ambition. Different workforce configuration. Change of focus. Not surprising at all and a signal they are being strategic with cost allocation. Hard news but a good signal to the market.

 

[Move]

My guess on this is that it is a rebalancing of their staffing surge with the recent service center expansions. I feel for the employees who are impacted, but as an organizational decision this doesn't concern me.

 

[andersonjanette]

Sad to see anyone lose their jobs but I do get the possible reasons. I went and saw an R2 at the University Village location in Seattle WA yesterday. There were 3 employees and I was the only one there for a while. The huge lack of knowledge they had on the R2 was astounding, along with their “yeah this is the cheaper version of the R1S” attitude. It’s the 4th time I’ve gone to that location and the first with them having the R2. The “I don’t know anything” and “I’m not here to/don’t care on selling you a car” attitude was honestly shocking.
I could have posed as an employee and known more

 

[Frost]

Sad to see anyone lose their jobs but I do get the possible reasons. I went and saw an R2 at the University Village location in Seattle WA yesterday. There were 3 employees and I was the only one there for a while. The huge lack of knowledge they had on the R2 was astounding, along with their “yeah this is the cheaper version of the R1S” attitude. It’s the 4th time I’ve gone to that location and the first with them having the R2. The “I don’t know anything” and “I’m not here to/don’t care on selling you a car” attitude was honestly shocking.
I could have posed as an employee and known more

I'm always astounded when employees that are customer facing are like this... perplexing

 

[Zathras]

My guess on this is that it is a rebalancing of their staffing surge with the recent service center expansions. I feel for the employees who are impacted, but as an organizational decision this doesn't concern me.

Shoot, if I was laid off, I'd be applying for second shift on the R2 line.

Luckily I'm retired and am only accountable to me. (And she who must be obeyed.)

 

[UnsungZero_OldTimeAdMan]

Sad to see anyone lose their jobs but I do get the possible reasons. I went and saw an R2 at the University Village location in Seattle WA yesterday. There were 3 employees and I was the only one there for a while. The huge lack of knowledge they had on the R2 was astounding, along with their “yeah this is the cheaper version of the R1S” attitude. It’s the 4th time I’ve gone to that location and the first with them having the R2. The “I don’t know anything” and “I’m not here to/don’t care on selling you a car” attitude was honestly shocking.
I could have posed as an employee and known more

Reading this, two things come to mind. A potential customer (and new to direct sales transaction model) would wonder why this experience promises to be better compared to the more familiar dealerships. And how did these knuckleheads get hired? Just better liars? Hiring manager is a poor judgment of character? Given scarcity of jobs, sad to think at least 3 people out there were more qualified but got dismissed.

Rivian’s been focused on engineering, production and CAPEX. But, together with inconsistency in how existing customers are treated on service issues, I get impression that customer satisfaction is being overlooked… and if there is anyone in charge of it, they are just skating on the job.

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