Key Highlights
- Rivian has cut more than 700 jobs across two rounds of layoffs.
- The company says the move is aimed at improving efficiency.
- Layoffs come ahead of Rivian’s planned R2 SUV launch in 2026.
Electric vehicle maker Rivian is reducing its workforce as the company looks to streamline operations while preparing for the launch of its upcoming R2 SUV, expected in 2026.
The company has eliminated more than 700 positions across two separate rounds of layoffs, reflecting growing pressure in the electric vehicle market and Rivian’s efforts to improve efficiency.
The first round of job cuts took place in June 2025, when Rivian reduced around 140 salaried roles from its manufacturing division. At the time, the company described the cuts as targeted changes focused on addressing “process inefficiencies.”
The layoffs represented roughly 1% of Rivian’s workforce, which stood at nearly 15,000 employees.
The company’s focus during this period remained on preparing for the R2 SUV, a lower-cost vehicle expected to help Rivian reach a wider customer base.
Second Round of Layoffs Deepened Workforce Reduction
A few months later, in October 2025, Rivian announced a second and much larger round of workforce reductions.
This time, the company cut more than 600 positions, accounting for around 4% to 4.5% of its workforce.
According to reports, CEO RJ Scaringe said the company needed to consolidate operations as part of broader internal restructuring efforts.
Taken together, the two rounds of layoffs removed more than 740 jobs in less than six months, marking a notable workforce reduction for the EV manufacturer.
The changes also come at a time when the broader electric vehicle market has started facing slower demand growth.
One of the major challenges affecting the sector has been the end of federal tax credits that previously helped make electric vehicle purchases more affordable for U.S. consumers.
Several companies in the EV industry have been adjusting production plans and reviewing costs as the market shifts.
For Rivian, the layoffs appear to be part of a wider effort to manage expenses and improve operational performance ahead of the R2 launch, which is seen as an important step in the company’s long-term growth plans.
The R2 is expected to be priced lower than Rivian’s current lineup and could help the company appeal to a larger segment of buyers in a more competitive market.
Industry observers say workforce reductions of this scale often suggest changing internal forecasts or a stronger push toward cost discipline, particularly as EV makers adapt to softer demand conditions and evolving consumer incentives.