Rivian Automotive Lays Off Workers to Cut Costs Ahead of SUV Launch

Rivian Automotive is cutting costs before the launch of its SUV by shedding workers. The company, which develops and builds electric vehicles and accessories, has been working on the R1T pickup truck and R1S SUV, as well as a commercial vehicle platform and fleet management subscription platform. Rivian has also offered financing, insurance, maintenance, and repair services, as well as charging and software solutions. The company has been in collaboration with Amazon to develop the Electric Delivery Van.

Rivian Automotive, Inc. has announced another round of layoffs as the electric vehicle (EV) maker continues to streamline operations in preparation for the highly anticipated launch of its R2 SUV. The company confirmed that approximately 1.5% of its workforce, around 200-225 employees, will be affected by this latest round of cuts, which will take effect immediately in the United States and Canada [1].

The layoffs, which focus on the commercial team overseeing sales and service operations, are part of Rivian’s ongoing effort to improve operational efficiency for the R2 SUV. The company aims to bring the new model to market in 2026, with production set to commence at its factory in Normal, Illinois [1].

Rivian’s workforce reductions are not isolated events. The company has implemented several rounds of layoffs since late 2023, each aimed at preparing for the R2 launch. In December 2023, Rivian laid off up to 20 members of its battery development team. In February 2024, the company slashed about 10% of its salaried workforce amidst slowing EV demand and broader economic headwinds. Subsequent rounds of layoffs in April and June 2024, as well as in June 2025, have further streamlined operations [1].

The timing of this latest round of layoffs coincides with Rivian facing 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. Additionally, regulatory changes under the Trump administration, including the suspension of fines for fuel-economy rule violations, have held up as much as $100 million in revenue tied to compliance credits, adding strain to Rivian’s balance sheet [1].

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 [1].

Rivian’s strategic partnership with Amazon has also been a significant aspect of its operations. The company has collaborated with Amazon to develop the Electric Delivery Van (EDV), which is designed and engineered by Rivian. Alongside its commercial vehicles, Rivian offers FleetOS, a proprietary, end-to-end centralized fleet management subscription platform, as well as various services including financing, insurance, vehicle maintenance, and charging solutions [2].

The latest round of layoffs underscores Rivian’s commitment to cost-cutting measures and operational efficiency as it prepares for the R2 SUV launch. The company has emphasized that impacted workers will be encouraged to apply for other roles within the company, with rehire eligibility in place [1].

References:

[1] https://driveteslacanada.ca/news/rivian-layoffs-hit-another-1-5-of-workforce/
[2] https://www.marketscreener.com/news/ev-maker-rivian-lays-off-workers-as-it-preps-launch-of-cheaper-suv-wsj-ce7d59d8dc8ff526