Rivian Moves More Engineers Near Illinois EV Factory to Speed Up Output

The young company is in part trying to centralize more of its workforce. During the Covid-19 pandemic, Rivian hired engineers wherever it could find them and allowed them to work remotely, the person familiar with the plans said. 

As a result its employees are scattered across the U.S. in states like Michigan, Texas and Virginia, in addition to those located at the headquarters and in Illinois, the person added. 

The relocations come as Rivian is overhauling its sole production facility to expand both the speed and capacity of its assembly lines. The team being relocated to Normal, Ill. is responsible for the design and functioning of the factory, from the machines that help build the vehicles to layout of the assembly line.

It couldn’t be learned how many employees would be affected by the reorganization. 

So far, management has had some conversations with the manufacturing-engineering team, and a few dozen employees have indicated an unwillingness to move, the person said. For those who won’t relocate, Rivian plans to offer them severance and fill vacancies created with new hires, the person said. 

The company, which employs about 14,000 workers, went public in late 2021 and grew rapidly during a period where remote work was the norm. 

The company has run into a litany of problems on the manufacturing floor, including parts shortages and other logistical snags, following the launch of its first all-electric models—the R1T pickup truck and R1S sport-utility vehicle—in 2021. 

The consolidation of Rivian’s manufacturing team comes as the young company rushes to trim spending and refocus resources on the manufacturing side of the business. 

The EV maker conducted two rounds of white-collar layoffs and pushed back the launch of a new generation of vehicles to 2026 in an effort to conserve cash and focus on its current lineup of products.

Rivian burned through $6.6 billion in cash last year, leaving it with $11.6 billion at the end of December. The company subsequently raised another $1.5 billion from investors in the form of convertible bonds, and Rivian has said it can fund its operations through 2025. Analysts expect those cash reserves to fall by another $6 billion this year.

Chief Executive Officer

RJ Scaringe

has said that Rivian’s recent spending cuts have been partly in response to economic concerns and tightening capital markets and that the company needs to sharpen focus on the parts of the business best positioned to deliver near-term returns. That includes speeding up manufacturing of its current lineup of vehicles, which include a delivery van for

Amazon.com Inc.

Across the auto industry, companies both new and established are struggling to boost factory output of electric vehicles, as they contend with parts shortages, logistical hurdles and quality problems.

General Motors Co.

has stumbled with the launches of two key models, the GMC Hummer EV and Cadillac Lyriq, in part because of troubles getting enough battery cells. 

Ford Motor Co.

halted production of its electric F-150 Lightning pickup truck for five weeks in February and March after one of them caught fire during a predelivery quality check. 

Such production challenges put car companies at risk of losing out on sales. Many EV models, including Rivian’s, have long waiting lists with buyer interest in battery-powered vehicles booming. Currently,

Tesla Inc.

is the only car maker in the U.S. that sells EVs in high volumes.

Lucid Group Inc.

slashed its production target twice last year in response to parts supply issues and has said some early reservation holders canceled after delays.

Rivian has faced its share of challenges with learning the intricacies of mass manufacturing automobiles. Logjams along the assembly line and shortages of key components made it so the startup struggled for much of last year to operate its plant for a full working week. 

The startup also launched three different models at the same time, a challenge that established auto makers rarely attempt. 

As a result, Rivian is producing far fewer vehicles than its factory is designed to do, which is exacerbating its cash problem. “It isn’t capital efficient,” said Mr. Scaringe in November. “It isn’t utilizing the resources in the facility the way they are intended.”

Write to Sean McLain at sean.mclain@wsj.com

The young company is in part trying to centralize more of its workforce. During the Covid-19 pandemic, Rivian hired engineers wherever it could find them and allowed them to work remotely, the person familiar with the plans said. 

As a result its employees are scattered across the U.S. in states like Michigan, Texas and Virginia, in addition to those located at the headquarters and in Illinois, the person added. 

The relocations come as Rivian is overhauling its sole production facility to expand both the speed and capacity of its assembly lines. The team being relocated to Normal, Ill. is responsible for the design and functioning of the factory, from the machines that help build the vehicles to layout of the assembly line.

It couldn’t be learned how many employees would be affected by the reorganization. 

So far, management has had some conversations with the manufacturing-engineering team, and a few dozen employees have indicated an unwillingness to move, the person said. For those who won’t relocate, Rivian plans to offer them severance and fill vacancies created with new hires, the person said. 

The company, which employs about 14,000 workers, went public in late 2021 and grew rapidly during a period where remote work was the norm. 

The company has run into a litany of problems on the manufacturing floor, including parts shortages and other logistical snags, following the launch of its first all-electric models—the R1T pickup truck and R1S sport-utility vehicle—in 2021. 

The consolidation of Rivian’s manufacturing team comes as the young company rushes to trim spending and refocus resources on the manufacturing side of the business. 

The EV maker conducted two rounds of white-collar layoffs and pushed back the launch of a new generation of vehicles to 2026 in an effort to conserve cash and focus on its current lineup of products.

Rivian burned through $6.6 billion in cash last year, leaving it with $11.6 billion at the end of December. The company subsequently raised another $1.5 billion from investors in the form of convertible bonds, and Rivian has said it can fund its operations through 2025. Analysts expect those cash reserves to fall by another $6 billion this year.

Chief Executive Officer

RJ Scaringe

has said that Rivian’s recent spending cuts have been partly in response to economic concerns and tightening capital markets and that the company needs to sharpen focus on the parts of the business best positioned to deliver near-term returns. That includes speeding up manufacturing of its current lineup of vehicles, which include a delivery van for

Amazon.com Inc.

Across the auto industry, companies both new and established are struggling to boost factory output of electric vehicles, as they contend with parts shortages, logistical hurdles and quality problems.

General Motors Co.

has stumbled with the launches of two key models, the GMC Hummer EV and Cadillac Lyriq, in part because of troubles getting enough battery cells. 

Ford Motor Co.

halted production of its electric F-150 Lightning pickup truck for five weeks in February and March after one of them caught fire during a predelivery quality check. 

Such production challenges put car companies at risk of losing out on sales. Many EV models, including Rivian’s, have long waiting lists with buyer interest in battery-powered vehicles booming. Currently,

Tesla Inc.

is the only car maker in the U.S. that sells EVs in high volumes.

Lucid Group Inc.

slashed its production target twice last year in response to parts supply issues and has said some early reservation holders canceled after delays.

Rivian has faced its share of challenges with learning the intricacies of mass manufacturing automobiles. Logjams along the assembly line and shortages of key components made it so the startup struggled for much of last year to operate its plant for a full working week. 

The startup also launched three different models at the same time, a challenge that established auto makers rarely attempt. 

As a result, Rivian is producing far fewer vehicles than its factory is designed to do, which is exacerbating its cash problem. “It isn’t capital efficient,” said Mr. Scaringe in November. “It isn’t utilizing the resources in the facility the way they are intended.”

Write to Sean McLain at sean.mclain@wsj.com