RIVIAN CUTS 600 JOBS AS EV MARKET COOLS AND INCENTIVES FADE

Rivian Automotive has announced plans to lay off approximately 600 employees, about four percent of its U.S. workforce, in a renewed effort to reduce costs and navigate the growing turbulence in the electric vehicle market. The decision underscores a turning point for the California-based automaker, which is facing declining EV demand, the expiration of key tax credits, and intensifying competition from both established carmakers and newer electric rivals.

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Once viewed as one of the most promising startups in the EV space, Rivian is now confronting the realities of a shifting market landscape. With economic uncertainty dampening consumer spending and price-sensitive buyers gravitating toward more affordable options, the company is reassessing its growth trajectory to focus on operational efficiency and long-term sustainability.

LAYOFFS REFLECT PRESSURE FROM MARKET CONDITIONS AND POLICY CHANGES

Rivian's layoffs come at a time of growing financial caution across the electric vehicle industry. The company confirmed that the cuts will primarily affect administrative and support functions rather than manufacturing teams, as it seeks to preserve production momentum at its Illinois plant, where it builds the R1T pickup, R1S SUV, and commercial delivery vans for Amazon.

According to internal guidance, the company will prioritize the reallocation of resources toward the upcoming R2 midsize SUV, a more affordable vehicle that could dramatically expand Rivian's customer base when it debuts in 2026. Executives see the R2 as critical to Rivian's path toward profitability and long-term survival in a market where growth is slowing and incentives are shrinking.