Rivian Slashes 600 Jobs as EV Market Cools

Rivian is reportedly laying off around 4% of its workforce as the electric-vehicle startup looks to rein in costs amid a slowdown in the EV market. Sources tell the Wall Street Journal and Bloomberg that the company is cutting at least 600 jobs, mostly in the servicing and sales departments. The move comes just a month after a smaller round of layoffs that cut 1.5% of staff, signaling deepening concerns about demand and policy headwinds in the industry.

With the end of a key $7,500 federal tax credit for EV buyers, Rivian and its competitors are facing a tougher sales environment. The company, which had just under 15,000 workers at the end of last year, is also grappling with the loss of revenue from compliance credits—a stream that has been disrupted by the government's shift away from pro-EV policies. Rivian estimates that the policy changes could delay about $100 million in revenue.

Rivian's vehicle sales rose 32% in the third quarter to 13,201 units ahead of the withdrawal of EV credits. However, the company has trimmed its delivery forecast for the year and now expects to deliver between 41,500 and 43,500 vehicles, down from an earlier high-end estimate of 46,000. The company, which went public in 2021, is still burning through cash, posting a $1.1 billion loss in the second quarter, but it maintains it has enough funds to launch its upcoming R2 SUV, the Journal reports. The new model will start at around $45,000, significantly less than the current R1T pickup and R1S SUV, which are priced near $71,000 and $77,000, respectively. (Last month, Ford's CEO predicted a major slowdown in EV sales.)