Rivian $RIVN ( 0.0% ) reportedly plans to lay off more than 600 workers as a growing number of automakers grapple with slowing EV demand and shifting policies reshaping the market.
The details: News of the Rivian layoffs follows prior cuts across the automaker’s workforce in recent months, as the company gears up for the rollout of its first mass-market vehicle, the R2 SUV, set to launch in 2026.
In September and June, the EV maker laid off between 100 and 150 workers in its commercial and manufacturing teams.
Rivian has yet to release details about the latest round of cuts, but reports indicate they will affect roughly 4% of the company’s total workforce.
Why it matters: Rivian’s layoffs underscore the broader struggles facing the EV industry as demand cools and government incentives shift. The company is tightening operations to conserve cash and stay competitive ahead of its pivotal R2 launch.
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Between the lines: The upcoming launch of the more affordable R2—expected to start around $45,000—will mark a critical juncture for Rivian as it works to expand its market share amid the phaseout of the $7,500 federal EV tax credit.
In early October, Rivian projected deliveries of about 43,500 vehicles by the end of 2025, nearly a 16% decline from its 2024 volume.
The company reportedly lost $1.1 billion in the second quarter due to market challenges, reports CNBC.
Rivian did, however, see deliveries climb to 13,201 vehicles in Q3, up from 10,661 in Q2 and 8,640 in Q1.
Despite the headwinds, Rivian CEO RJ Scaringe remains optimistic about the company’s ability to navigate the market, pointing to its focus on electrification.
“What I think will happen as we play out the rest of the 2020s, like through 2029, 2030, is you’re going to have sort of a vacuum of competition, and the pure-play EV-focused companies—Rivian, Tesla, there’s not very many—because they’re completely and fully focused on electrification, will have the advantage of a pretty thin competitive playing field,” said Scaringe (per TechCrunch).
Bottom line: The EV market is entering a shakeout phase. Slowing demand, rising costs, and shrinking incentives are forcing automakers to cut jobs and rein in spending. The next few years will be a defining period for which companies can manage the high costs of scaling production—and which ones fail to make the cut.
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