Rivian Automotive plans to cut more than 600 jobs, affecting roughly 4% of its workforce, as the electric vehicle (EV) maker navigates a tougher market environment.
The layoffs, first reported by The Wall Street Journal, come as Rivian grapples with the expiration of a $7,500 U.S. federal tax credit and weaker-than-expected EV demand.
The company, which had just under 15,000 employees at the end of last year, confirmed to CNBC that additional details about the layoffs would be shared with workers on Thursday. This follows a smaller round of layoffs reported a month ago, signaling ongoing efforts to reduce costs.
Rivian and other EV manufacturers face mounting challenges under changing regulations in the Trump administration, including the elimination of the federal EV tax credit last month. The loss of this incentive is expected to raise prices and further dampen demand, adding pressure to automakers already dealing with high production costs and tariffs on imported auto parts.
Despite a 32% year-over-year increase in vehicle sales to 13,201 units in the third quarter, driven by buyers rushing to secure the tax credit before its September expiration, Rivian narrowed its 2025 delivery forecast to 41,500-43,500 vehicles, down from a high of 46,000.
The company also reported a $1.1 billion loss in the second quarter. It raised its projected adjusted core loss for the year to between $2 billion and $2.25 billion, up from an earlier estimate of $1.7 billion to $1.9 billion.
Rivian is focusing on streamlining operations at its Normal, Illinois, plant and improving manufacturing efficiency to align with weaker near-term demand. The company is preparing for the launch of its next-generation R2 models in 2026, which are expected to target a lower-price segment and compete with Tesla’s Model Y crossover, potentially offsetting softer demand for its pricier R1 vehicles.
Analysts anticipate Rivian’s third-quarter revenue rising 71.5% and its loss narrowing when results are reported after markets close on November 4. Shares of Rivian remained steady in trading Thursday morning but are down about 3% for the year.
A person familiar with the matter told Reuters that Rivian’s job cuts are part of broader efforts to curb costs as the company contends with intense competition from Tesla and traditional automakers, as well as supply chain challenges driven by high tariffs on imported parts.