Rivian Plans to Lay Off Over 600 Workers Amid Market Challenges

DETROIT, Michigan – Rivian Automotive plans to lay off more than 600 employees as the electric vehicle maker faces increasing market challenges, according to reports.

The Wall Street Journal reported on Thursday that the layoffs, impacting approximately 4% of Rivian’s workforce, follows a smaller round of job cuts last month. Rivian had just under 15,000 employees at the end of 2024.

A source familiar with the situation confirmed the layoffs to CNBC and mentioned that further details would be shared with employees on Thursday. The automotive industry, particularly electric vehicle makers like Rivian, is currently grappling with a decline in demand following the expiration of a $7,500 U.S. federal tax credit for electric vehicles last month.

The expiration of this tax incentive is expected to increase prices and further reduce demand, which poses new challenges for manufacturers already dealing with cost pressures. Rivian has also reported a decrease in its delivery forecast for 2025, adjusting it to between 41,500 and 43,500 vehicles, down from a previous estimate.

Rivian’s vehicle sales increased by 32% to 13,201 units year over year in the third quarter, driven by a surge in purchases before the federal incentives expired. However, the company expects to report a loss between $2 billion and $2.25 billion for the year, an increase from earlier forecasts.

As part of its strategy to cope with the weaker demand outlook, Rivian is focusing on enhancing manufacturing efficiency and streamlining operations at its Normal, Illinois plant. The company aims to prepare for its next-generation R2 models, which are set to expand its market reach by appealing to consumers looking for more affordable electric vehicles.

Despite these challenges, analysts expect Rivian’s quarterly revenue to rise by 71.5% when it reports its third-quarter results on November 4.