Rivian is preparing to cut more than 600 jobs, the third workforce reduction this year.
The layoffs, first reported by The Wall Street Journal, represent roughly 4% of the company’s total staff and follow a smaller round of cuts just a month ago.
The decision highlights the challenges Rivian faces as it seeks to balance its expanding product lineup with an increasingly difficult financial landscape. The automaker, which had about 15,000 employees at the end of 2024, is working to lower costs ahead of the launch of its more affordable R2 SUV, expected in 2026.
Rivian has struggled to achieve profitability amid rising production costs and slowing demand for EVs. The company reported a $1.12 billion loss in the second quarter of 2025 and has since narrowed its full-year forecast for adjusted core losses to between $2 billion and $2.25 billion, up from earlier expectations of $1.7 billion to $1.9 billion.
Vehicle deliveries have been growing but not fast enough to offset mounting expenses. Rivian delivered 13,201 vehicles in the third quarter — a 32% increase year-over-year — as customers rushed to take advantage of the expiring $7,500 U.S. federal EV incentive. However, the company trimmed its 2025 delivery guidance to between 41,500 and 43,500 vehicles, down from a previous range of up to 46,000.
The layoffs come amid broader uncertainty in the EV industry. Under new U.S. policies introduced by the Trump administration, the federal tax credit for EV purchases is no longer available as of September 30, a move expected to slow consumer demand. The change could impact Rivian’s revenues by an estimated $100 million, as regulatory credits have been a key part of its financial structure.
Despite these problems, Rivian remains committed to its long-term strategy of expanding its product portfolio beyond premium electric trucks and SUVs. The upcoming R2 lineup is expected to target a broader customer base with lower price points and higher production volume.
