Rivian Automotive Inc (NASDAQ:RIVN)’s shares were cut down by a quarter on Thursday after the electric utility vehicle maker announced a 10% workforce reduction.
The news came in the Nasdaq-listed group’s full-year 2023 financial results.
On a full-year basis, Rivian produced 57,232 vehicles and delivered 50,122, more than doubling production and deliveries from 2022, and exceeded its initial production guidance by more than 7,000 vehicles.
But forward guidance is cautious, with the group stating that “economic and geopolitical uncertainties and pressures, most notably the impact of historically high interest rates, have informed Rivian’s expectations for 2024”.
Rivian is expected to produce 57,000, effectively flatlining year-on-year production targets.
Net losses for the fourth quarter of 2023 were $1.54 billion, compared to $1.72 billion in losses for the same period last year.
For the whole fiscal year 2023, net losses were $5.4 billion compared to $6.75 billion in 2022.
“Rivian will continue its company-wide cost transformation program, which to date has resulted in meaningful reductions in total unit costs for both the R1 and EDV models through engineering design changes, commercial cost downs, and manufacturing efficiencies,” said the group.
Rivian ended the fourth quarter of 2023 with $9.7 billion in cash, cash equivalents, and short-term investments.
Shares were down 27% at $11.22 in opening exchanges.
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