Rivian has announced yet another round of layoffs as the electric vehicle (EV) maker works to cut costs ahead of its highly anticipated R2 SUV, expected to debut in 2026.
The company confirmed on Thursday that around 1.5% of its roughly 15,000 employees will be affected by this latest round of layoffs, or about 200-225 workers. Rivian explained in a statement to the Wall Street Journal that the cuts are focused on its commercial team, which oversees sales and service operations.
Impacted workers will be encouraged to apply for other roles within the company, with rehire eligibility in place.
A Rivian spokesperson said the changes were part of “an ongoing effort to improve operational efficiency for R2,” underlining that the launch of the new model is a priority. The workforce reductions take effect immediately in the United States and Canada.
Rivian’s latest cost-cutting effort is not an isolated event—it’s part of a series of workforce reductions, with recent rounds said to be in preparation for the launch of the R2:
- December 2023: Rivian lays off up to 20 members of its battery development team.
- February 2024: Rivian slashed about 10% of its salaried workforce amid slowing EV demand and broader economic headwinds. The company cited high interest rates and global uncertainty as major factors driving the decision.
- April 2024: Just two months later, another 1% reduction was implemented, targeting support and non-manufacturing roles to help the company reach gross-margin profitability by year-end.
- June 2024: Another two months later, and another round of layoffs, this time affecting a “small number of salaried positions.”
- June 2025: Rivian conducted a fourth round of job cuts, letting go of about 140 manufacturing employees, or roughly 1% of its workforce, to streamline operations for the R2 launch.
The timing of this latest round of layoffs comes as Rivian faces mounting financial pressures. The $7,500 U.S. federal EV tax credit, a key incentive driving sales, is set to expire at the end of September.
Rivian has also been affected by regulatory changes under the Trump administration, including the suspension of fines for fuel-economy rule violations. The company recently told a court that the rollback could hold up as much as $100 million in revenue tied to compliance credits, adding another strain on its balance sheet.
Despite reporting a $1.1 billion loss in the second quarter, Rivian maintains that it has sufficient capital to bring the R2 to market. The SUV is expected to start at around US$45,000, significantly undercutting the brand’s current offerings. The flagship R1T pickup starts at $70,990, while the R1S SUV begins at $76,900.
The R2 is expected to enter production in 2026 at the automaker’s factory in Normal, Illinois. Rivian also plans to build a second factory in Georgia.
