Rivian reportedly cutting 600 workers in third layoff of the year

TechCrunch
TechCrunch
2M ago
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Rivian is laying off 600 workers, about 4% of its workforce, as it prepares for the launch of its R2 SUV in 2026. This matters as the company struggles with sales and production ahead of a critical model release.
Rivian reportedly cutting 600 workers in third layoff of the year
A What happened
Rivian is reportedly cutting 600 jobs, which constitutes about 4% of its total workforce, in its third layoff of the year. This follows earlier cuts of 100 to 150 workers in September and June, primarily affecting its commercial and manufacturing teams. The layoffs occur as Rivian prepares to launch its R2 SUV in 2026, a crucial model for the company as it aims to ramp up production to 150,000 units annually at its Normal, Illinois factory. Despite these plans, Rivian is facing difficulties in sales, with projections indicating a 16% decline in total deliveries by the end of 2025 compared to the previous year. The company is also expanding its operations with a new factory near Atlanta to support the production of the R2 and other variants.
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Key insights

  • 1

    Ongoing layoffs: Rivian's third layoff this year highlights financial struggles.

  • 2

    R2 SUV launch: The upcoming R2 SUV is critical for Rivian's future.

  • 3

    Sales decline: Projected 16% drop in deliveries signals market challenges.

Takeaways

Rivian's recent layoffs and sales projections underscore the challenges it faces in the competitive electric vehicle market as it prepares for a pivotal product launch.

Topics

Business & Markets Economy