Electric vehicle manufacturer Rivian Automotive is cutting approximately 4.5% of its workforce as it confronts tightening market conditions and shifting regulatory policies, according to an internal memo sent to employees on Thursday.
The memo, written by Rivian founder and CEO RJ Scaringe, outlined that the layoffs will primarily affect staff in the marketing, vehicle operations, sales and delivery, and mobile operations divisions.
“These are not changes that were made lightly,” Scaringe said. “With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions. This news is challenging to hear, and the hard work and contributions of the team members who are leaving are greatly appreciated.”
Rivian, which had just under 15,000 employees at the end of 2024, did not disclose the exact number of affected workers. However, The Wall Street Journal first reported that the layoffs would impact over 600 employees, a figure later confirmed by a source familiar with the matter.
Facing a Shifting EV Landscape
The layoffs come as Rivian and other EV manufacturers face a tougher environment marked by weaker demand and regulatory changes under the Trump administration — including the removal of the $7,500 federal tax credit for electric vehicle purchases.
In addition, Rivian is grappling with slower-than-expected EV adoption, cash flow concerns, and a lack of new product launches until its next-generation R2 models debut in 2026. The company reported a $1.1 billion loss in the second quarter, underscoring ongoing financial pressures.
Scaringe emphasized that the restructuring is intended to ensure the company can “deliver on our potential by scaling efficiently towards building a healthy and profitable business.”
Sales Growth but Narrowed Outlook
Despite the challenges, Rivian’s vehicle sales rose 32% year over year in the third quarter to 13,201 units, as buyers rushed to take advantage of EV incentives before they expired in September.
However, the company has narrowed its 2025 delivery forecast from as many as 46,000 vehicles to between 41,500 and 43,500, signaling a more cautious outlook amid softer market conditions.
In August, Rivian also projected a larger adjusted core loss for 2025, expecting between $2 billion and $2.25 billion, compared with its earlier forecast of $1.7 billion to $1.9 billion.
Stock Performance
Shares of Rivian (RIVN) closed up 1.3% at $13.09 on Thursday. The stock remains down less than 2% for the year, reflecting ongoing investor caution amid the company’s restructuring efforts and uncertain EV market trajectory.