Noting the deteriorating economic situation has reduced its ability to raise money and ramp up productions, Rivian Automotive announced it will be laying off about 6% of its workforce and simplifying its production plans.

The cuts were confirmed Wednesday in an  internal memo from Chief Executive Officer RJ Scaringe. He wrote the firm’s ability to fundraise has been hard hit by surging inflation, higher interest rates and higher commodity prices.

In the memo he wrote, “We need to be able to continue to grow and scale without additional financing in this macro environment. To achieve this, we have simplified our product roadmap and focused on where it is most impactful to deploy capital.”

The cuts come on the heels of Rivian’s expansion over the past year as it prepared to ramp up production numbers of its electric pickups, SUVs, and delivery vans. Seen as a leading rival to market-leader Tesla, Rivian has one of the biggest ever US initial public offerings in November.

But so far this year, the stock has declined 69% as supply chain snarls and parts shortages savaged production numbers.

Given Rivian employs roughly 14,000 workers in its Normal, Illinois factory, as well as its headquarters in California, and sites in Michigan, the UK and Canada, the cuts will eliminate hundreds of jobs. However the memo noted that the cutbacks will not include any factory workers in the Normal, Illinois factory.

Scaringe apologized to those being released, saying, “To those leaving Rivian, I am genuinely sorry.”