Oct. 23 (UPI) — All-electric vehicle maker Rivian Automotive has announced it is laying off 4.5% of its workforce amid mounting market pressures, the company said Thursday.
In a memo sent to employees, company founder and CEO RJ Scaringe said the cuts involve restructuring of its marketing, vehicle operations, sales and delivery and mobile teams, according to CNBC.
“These were not changes that were made lightly,” Scaringe said in the memo. “With the changing operating backdrop, we had to rethink how we are scaling out go-to-market- functions. The news is challenging to hear, and the hard work and contributions of the team members who are leaving are greatly appreciated.”
Rivian ended 2024 with just under 15,000 employees.
Scarigne’s memo did not say exactly how many employees would be let go, but according to The Wall Street Journal, which first reported the plan, the layoffs would affect more than 600 employees.
Rivian and other elective vehicle makers are facing difficult sales and marketing conditions following the end of a $7,500 dollar tax credit for EV purchases in the new federal budget.
Demand has also been lower than expected for Rivian amid regulatory issues. The automaker also lacks new products until next year and faces a cash shortage. It lost $1.1 billion during the second quarter.
This is the latest in a series of layoffs. Rivian furloughed between 100 and 150 workers in its commercial and manufacturing teams between September 2024 and June.
Rivian is scheduled to release at least 150,000 R2 SUVs in 2026, which will be more widely available to consumers than previous models.
The company also recently started construction on its third manufacturing facility outside of Atlanta, where it plans to build the R2 and other models.
The company has struggled to maintain a sales pace with its current lineup of vehicles. Its sales are projected to drop by 16% in 2025 compared to last year.