About 840 of those employees were told Wednesday that they will be leaving the company.
Scaringe pointed to inflation, rising interest rates and increased commodity prices as factors that led the startup automaker to trim its workforce.
Rivian only recently started production of its three initial products, the R1T pickup, the R1S luxury SUV and an electric delivery van for which Amazon, a major Rivian investor, is the primary customer.
“We are financially well positioned and our mission is more important than ever, but to fully realize our potential, our strategy must support our sustainable growth as we ramp towards profitability.” Scaringe wrote in an email to employees announcing the layoffs.
The Irvine, California-based company offered departing employees 14 weeks of regular pay as well of continuing healthcare coverage through the end of the year.