Rivian Automotive is gearing up for its second round of layoffs, with the electric vehicle company expected to cut 1.5% of its workforce. The EV maker’s hand is forced due to budget-cutting measures before the launch of its new R2 SUV, which is expected to break cover next year. There was a cloud of uncertainty hovering over Rivian. With a recent batch of layoffs, temporary production halts, and a focus on long-term profitability, the company seems to be putting all its eggs in the affordable R2’s basket. This strategic pivot represents a critical juncture, determining whether Rivian achieves sustainable success or risks failure amid intense market challenges.
Go big or go home?
Speaking to Bloomberg, a Rivian spokesperson explained that the job cut would be less than 1.5% of the workforce, and this would affect the commercial team, which includes sales and service departments. The spokesperson said, “We have made some recent changes to the commercial team as part of an ongoing effort to improve operational efficiency for R2.” The spokesperson further added that the affected employees can apply for other positions in the company and opt for a rehire. The loss of EV incentives that comes to an end on September 30 and the skyrocketing of tariffs have made the situation even more challenging for Rivian.
Rivian
In the last two years, Rivian has taken some tough calls by slashing around 16% of jobs since 2022, and this has yielded some success. In 2024 Q4, the company registered its first quarterly gross profit, and the cost of production plunged by $31,000. This was a temporary victory, as 2025 Q2 posted that the deliveries of the EVs spiraled down to 23% year-on-year. This was marred by the temporary shutdown of the manufacturing plant and headcount reduction.
Related: Rivian Taking On Tesla and Lexus With Steer-By-Wire System
Rivian R2 Shake-Up: Cutting Costs to Speed Gains
Rivian has been working on the budget-friendly SUV, the R2, which is based on a new platform, and is hoping to create a stir in the mass market segment. Starting from $45,000, the R2 will be available in multiple powertrains — single, dual and triple motor setups. Rivian has not revealed the power output specifications, but the tri-motor version will accelerate from 0 to 60 mph in 3 seconds. The R2 could be offered in two battery options, with the long-range one returning a driving range of 300 miles.
