On the Dash:Â
- Rivian is cutting less than 1.5% of its staff, mainly from its commercial team, to reduce costs ahead of the R2 launch.
- The company lost $1.1 billion in Q2 but says it has sufficient funds to bring the $45,000 R2 SUV to market, aiming for broader appeal than its higher-priced models.
- Expiring U.S. EV tax credits and regulatory changes are straining Rivian’s revenue, while other automakers like GM and Volkswagen are also scaling back production.
Rivian is laying off less than 1.5% of its workforce as the electric vehicle maker works to cut costs ahead of the launch of its next model, the R2 SUV, expected next year.
The job cuts affect roughly 225 employees, primarily within the company’s commercial team that oversees sales and service operations in the U.S. and Canada. A Rivian spokesperson said the reductions, effective immediately, are part of an effort to improve operational efficiency for the upcoming R2. Impacted workers are eligible for rehire and encouraged to apply for open positions.
Rivian, which had roughly 15,000 employees at the end of last year, has positioned the R2 as its mass-market entry model. Priced around $45,000, the SUV is expected to draw greater demand than the company’s higher-priced R1T pickup, starting at $70,990, and R1S SUV, starting at $76,900.
The company reported a $1.1 billion loss in the second quarter but stated that it has sufficient cash to bring the R2 to market. Rivian, which went public in 2021, has faced ongoing pressure to streamline operations and manage its liquidity.
Further, the layoffs occur as U.S. automakers prepare for the September 30 expiration of the $7,500 federal EV tax credit. The policy shift, combined with changes under the Trump administration that eliminated fines for fuel economy violations, has disrupted revenue streams for EV-only companies like Rivian. In a recent court filing, the company stated that the rule changes could result in an estimated $100 million in lost revenue from compliance credits.
Broader industry adjustments reflect similar concerns; for instance, General Motors announced this week that it temporarily laid off 360 workers at a Detroit plant producing the GMC Hummer EV and Cadillac Escalade IQ. Similarly, Volkswagen announced it will slow production of its ID.4 SUV at its Tennessee plant and furlough 160 employees to align with market demand.
Despite the challenges, Rivian expects the R2 to attract higher volume and help it reach a broader customer base. The company has said it sees the upcoming SUV as key to its long-term growth in an increasingly competitive EV market.
