Rivian cuts jobs as R2 SUV rollout begins
Rivian is laying off less than 2% of its workforce as it tries to reduce losses during the launch of its R2 SUV.
By Daniel Okafor · Business Editor
2 min read
Rivian is cutting hundreds of jobs as the electric vehicle maker works to reduce losses, CNBC reported Tuesday. The reductions come just after the company began deliveries of the R2 SUV, a vehicle Rivian has positioned as central to its push toward profitability.
The layoffs amount to less than 2% of Rivian’s workforce, according to CNBC. A company spokesperson told CNBC the cuts affect some service and customer teams.
Rivian had 15,232 employees across North America and Europe at the end of last year, according to CNBC, citing company information. In a statement to CNBC, Rivian said, “We recently restructured a handful of teams within Rivian as we work to profitably scale our business.”
R2 launch raises stakes
The job cuts follow Rivian’s official start of R2 SUV deliveries last week, CNBC reported. The R2 is a key model for the company because Rivian has been trying to move beyond a smaller market for higher-priced electric vehicles.
CNBC reported that Rivian sees the R2 as a way to broaden its appeal and compete more directly in the mainstream EV market, where Tesla remains the leading U.S. player. Rivian has said it expects the R2 to help the company reach profitability, according to CNBC.
Rivian has not posted an annual profit, CNBC reported. The company lost $3.6 billion last year while delivering 42,247 vehicles, according to company filings cited by CNBC.
CNBC also reported that Rivian’s automotive business lost about $6,000 for each vehicle delivered in the first quarter of this year. Those figures show the financial pressure behind the company’s efforts to cut costs while ramping up a lower-priced, higher-volume product.
EV market pressure
Rivian’s cuts come as EV manufacturers face a tougher market than in recent years, CNBC reported. The sector has been affected by regulatory changes under the Trump administration, including the removal of a $7,500 federal incentive for EV purchases, according to CNBC.
The latest layoffs are not Rivian’s first recent workforce reduction. CNBC reported that the company cut more than 600 jobs in October, equal to about 4.5% of its workforce at the time.
Those earlier cuts were tied largely to changes in marketing, vehicle operations, sales and delivery, and mobile operations teams, CNBC reported. The new round is smaller by percentage but lands at a critical moment for Rivian as it tries to prove the R2 can support a more sustainable business model.
This story draws on original reporting from CNBC.