Rivian is cutting staff as electric vehicles become increasingly expensive to build and sell.
American EV manufacturer Rivian Automotive plans to lay off more than 600 employees, or about 4% of its total workforce, The Wall Street Journal reports. The move is aimed at reducing costs and adjusting to a slowdown in the electric vehicle market.
This is the company’s second round of layoffs in recent months — in September, Rivian cut roughly 1.5% of its staff. The automaker has been struggling with high production costs, declining demand, and growing competition from Tesla, Ford, and several Chinese brands.
Rivian continues to upgrade its Normal, Illinois, factory, where it builds the R1T pickup and R1S SUV, while also preparing to launch the upcoming R2, a more affordable electric SUV designed to broaden its customer base beyond the premium segment.
Analysts say the cuts highlight Rivian’s need to boost efficiency and move toward sustainable profitability. Despite a strong start and backing from major investors such as Amazon and Ford, the company still loses money on every vehicle it produces.