Rivian Automotive is reducing its workforce by hundreds of positions, targeting less than 2% of its staff, in a move to trim expenses following the initial deliveries of its R2 SUV. The layoffs are concentrated in customer-facing roles such as sales and marketing, according to a Reuters report.
The job cuts come about a week after Rivian began shipping the R2, a lower-priced SUV that the company hopes will attract a broader customer base. The R2 is a critical part of Rivian's strategy to expand beyond its core premium buyer segment. The company is aiming for 62,000 to 67,000 deliveries this year, but it continues to grapple with significant financial losses and rising research and development spending.
Rivian shares closed on Wednesday at $16.26, up 2% from the previous session. The stock had declined earlier in the day following the R2 delivery announcement and the layoff news. The shares dropped 7% on June 9, the day R2 deliveries began, as investors weighed the potential for increased volume against the risk of margin compression.
The company has not yet achieved a full-year net profit. In its 2025 fiscal year, Rivian delivered 42,247 vehicles and generated $5.39 billion in revenue, but reported a net loss of $3.63 billion. It did, however, post a full-year gross profit of $144 million, meaning revenue exceeded production costs before operating expenses were factored in.
Rivian has focused its layoffs in service and customer groups. A company spokesperson said, “We recently restructured a handful of teams within Rivian as we work to profitably scale our business.” Laid-off employees are eligible to apply for other positions within the company and will receive severance, benefits, and career transition support.
The R2 is currently available in a Performance version starting at $57,990. A Standard model is expected next year with a starting price of $44,990. Rivian has said that orders are open only for the Performance model now, with a Premium trim arriving in 2026 and the Standard trim set for 2027. The R2 moves Rivian closer to the core of the U.S. electric SUV market, where Tesla's Model Y remains the primary competitor. CEO RJ Scaringe has noted an “extreme lack of choice” for U.S. buyers under $50,000.
Rivian produced 10,236 vehicles and delivered 10,365 in the first quarter of 2026. It maintained its full-year delivery outlook of 62,000 to 67,000 units. Despite the cost-cutting measures, the company has lowered its target for adjusted core profit in 2027, citing increased investment in autonomous driving technology. Uber announced in March that it would invest up to $1.25 billion in Rivian through 2031, with plans to deploy 10,000 fully autonomous R2 robotaxis starting in 2028.
Industry analysts have noted that layoffs may be one of the few quick ways Rivian can reduce expenses. Ivan Drury, director of insights at Edmunds, said layoffs are “the one lever they can pull to rightsize things.” Auto analyst Brian Moody suggested the cuts are likely not tied to early R2 feedback, but rather reflect tepid demand for new EVs and higher-priced items. However, the reductions in service, sales, and marketing carry risks, as these areas are crucial for supporting the growing R2 customer base. Any deterioration in ownership experience could offset the savings from the layoffs.
