Rivian is cutting another 600 workers - its third layoff this year - as the electric truck maker grapples with plummeting sales and mounting pressure to deliver its mass-market R2 SUV. The cuts represent about 4% of the company's total workforce, according to The Wall Street Journal, signaling deeper financial strain at one of the most heavily funded EV startups.
Rivian's third workforce reduction in five months paints a stark picture of an EV startup burning through cash while waiting for its next breakthrough. The Amazon-backed company is cutting 600 positions, bringing its total layoffs this year to roughly 850 workers as it scrambles to stay afloat until the R2 SUV arrives.
The timing couldn't be worse for Rivian. While the company declined to specify which teams are getting hit this time, previous cuts in September and June targeted commercial and manufacturing divisions - the very departments needed to scale production. According to The Wall Street Journal report, these latest cuts affect roughly 4% of Rivian's remaining workforce.
The numbers tell the story of a company caught between ambitious plans and harsh market realities. Rivian's best-case scenario for 2025 deliveries represents a 16% drop from last year's already disappointing sales figures. That's not the trajectory investors expected when the company went public in 2021 with a valuation that briefly topped $100 billion.
But here's what makes this particularly painful - Rivian is essentially playing a high-stakes waiting game. The company has bet everything on its R2 SUV, a more affordable mass-market vehicle slated for 2026 that could produce up to 150,000 units annually at its Normal, Illinois factory. The startup even broke ground on a second facility near Atlanta to handle additional R2 production and variants.
The problem is that 2026 feels like a lifetime away when you're hemorrhaging money. Rivian's current lineup - the R1T pickup and R1S SUV - simply isn't moving fast enough to justify the company's operational costs. At over $75,000 starting price, these vehicles occupy a premium niche at a time when EV demand is cooling across most segments.
Industry analysts aren't surprised by the cuts. "Rivian is doing what every EV startup should have done two years ago," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. "They're rightsizing for reality instead of the fantasy that drove their IPO valuation."
The broader EV market isn't helping either. Ford recently scaled back its electric ambitions, Tesla's growth has slowed dramatically, and traditional automakers are pulling back on electric investments. Even with federal tax incentives, consumers are proving more selective about electric vehicles, especially at Rivian's price points.
