Rivian Cuts Over 600 Jobs in Urgent Cost-Cutting Move

UPDATE: Electric vehicle manufacturer Rivian has announced an urgent round of layoffs, cutting over 600 jobs, which represents approximately 4% of its workforce. This significant move comes just weeks after a previous layoff affected 1.5% of its staff, as the company seeks to reduce costs amid a challenging electric vehicle (EV) market.

The latest cuts come as Rivian grapples with deepening industry woes, including changes in federal tax credits and compliance credit markets that could delay an estimated $100 million in revenue. The company, which had nearly 15,000 employees at the end of last year, is now under intense pressure to streamline operations ahead of the launch of its more affordable SUV, the R2, anticipated in 2026.

In a surprising twist, even as Rivian reported a 32% increase in vehicle sales to 13,201 units in the third quarter, the company has lowered its full-year delivery guidance to between 41,500 and 43,500 vehicles, down from a previous forecast of up to 46,000. Rivian’s CEO, RJ Scaringe, emphasized the need for this restructuring during a challenging market phase, stating, “We recognize the need to streamline operations to ensure long-term success.”

The company will report its full quarterly earnings on November 4, where further insights into its financial health are expected. Despite a reported loss of $1.1 billion in the second quarter, Rivian maintains that it has sufficient funds to launch the R2, which is projected to start at around $45,000. This price point aims to attract new customers compared to the R1T pickup and R1S SUV, which currently start at $70,990 and $76,900, respectively.

Scaringe has been vocal about the evolving landscape of the automotive industry, comparing traditional combustion engine vehicles to “building a horse barn in 1910.” He stated, “The performance and drivability of an EV makes it so much more desirable than an alternative.”

Rivian’s focus on the R2 model reflects its anticipation of increased demand, but the company must navigate these layoffs and financial pressures to realize its ambitions in a competitive market.

As the situation develops, stakeholders and employees will be closely monitoring Rivian’s strategies and market responses. The urgency of these layoffs highlights the volatile nature of the EV industry and the significant impacts on workforce stability.

Stay tuned for more updates as Rivian prepares to reveal its financial outlook and future plans in the coming days.