Rivian Cuts Over 600 Jobs in Urgent Layoffs Amid EV Crisis

URGENT UPDATE: In a dramatic move, electric vehicle maker Rivian has announced a second round of layoffs this month, cutting over 600 jobs, which represents approximately four percent of its workforce. This decision comes as the company grapples with a challenging landscape in the electric vehicle (EV) industry.

Just earlier this month, Rivian had already laid off 1.5 percent of its staff as part of cost-cutting measures ahead of the anticipated launch of its more affordable R2 SUV in 2026. With nearly 15,000 employees at the end of last year, the latest layoffs highlight the urgent need for Rivian to streamline operations amid declining market conditions.

The company is facing significant financial hurdles, including an estimated $100 million revenue shortfall due to recent changes in federal tax credits for EV buyers. This situation has severely impacted sales and disrupted the market for compliance credits, which are vital for the profitability of Rivian and its competitors.

Despite a reported 32 percent increase in vehicle sales, delivering 13,201 units in the third quarter, Rivian has downgraded its annual delivery forecast to between 41,500 and 43,500 vehicles, down from a previous estimate of up to 46,000. The company is set to release its full quarterly earnings on November 4, an announcement that many investors will be watching closely.

In a bid to regain market confidence, Rivian is preparing for the launch of the R2 SUV, expected to be priced around $45,000, significantly lower than its existing R1T pickup and R1S SUV, which start at $70,990 and $76,900 respectively. CEO RJ Scaringe anticipates a higher demand for this model, aiming to capture a broader customer base.

“The performance and drivability of an EV makes it so much more desirable than an alternative,” said Scaringe, who has previously likened traditional gas vehicles to “building a horse barn in 1910.”

Despite a staggering $1.1 billion loss in the second quarter, Rivian maintains that it has sufficient funds to push forward with the launch of the R2. However, the company recognizes the imperative to cut costs and navigate the rapidly evolving market.

The urgency of these layoffs reflects not only Rivian’s internal pressures but also broader trends affecting the entire EV sector. As competition intensifies and financial landscapes shift, Rivian’s ability to adapt will be crucial for its survival and future growth.

As Rivian continues to face these challenging circumstances, stakeholders and consumers alike will be closely monitoring the company’s next moves, particularly as it prepares for the R2 launch and its upcoming earnings report.

Stay tuned for more updates as this situation develops.