The electric vehicle (EV) market is undergoing a significant transformation, and Rivian is the latest company to feel the effects. With a reported 600 job cuts, the company is reducing its workforce by about 4% in its third layoff of the year. This move reflects broader industry trends, as EV manufacturers struggle to maintain sales momentum amidst increasing competition and shifting consumer demand.
As Rivian prepares to launch its mass-market R2 SUV in 2026, the company is facing challenges in keeping up with sales targets. Its current lineup is expected to see a 16% drop in delivery figures by the end of 2025, compared to last year’s sales. The R2 SUV is a crucial model for Rivian, with plans to produce up to 150,000 units per year at its factory in Normal, Illinois. The company has also broken ground on a new factory outside of Atlanta, which will contribute to the production of the R2 and other variants.
The layoffs are a strategic move to optimize Rivian’s operations and resources, allowing the company to focus on its core objectives. With the EV market becoming increasingly saturated, manufacturers must adapt to changing consumer preferences and technological advancements. Rivian’s decision to reduce its workforce is a testament to the company’s efforts to remain competitive and navigate the evolving landscape of the EV industry.
Source: Official Link