Rivian to Lay Off More Than 600 Workers Amid EV Pullback

 

Rivian Automotive Inc. is laying off over 600 employees, approximately 4% of its workforce, as the electric vehicle (EV) market faces declining policy support and slowed consumer demand. This follows a smaller layoff just a month earlier, affecting 1.5% of staff. The expiration of a $7,500 federal EV tax credit is expected to significantly impact sales, and Rivian estimates that policy changes could delay around $100 million in revenue related to compliance credits. Despite a 32% rise in vehicle sales to 13,201 units in Q3, Rivian has revised its 2025 delivery guidance downward to 41,500–43,500 vehicles, from a previous high of 46,000. The company, which went public in 2021, reported a $1.1 billion loss in Q2 but maintains it has sufficient funds to proceed with the R2 SUV launch. The R2, expected to start at $45,000, is projected to have higher demand than the current R1T and R1S models. (وول ستريت جورنال)

Rivian's decision to cut jobs comes as it grapples with weakening demand following the expiry of key U.S. tax credits that had supported sales. The expiration of the $7,500 federal tax credit for purchases of new EVs last month is expected to drive up prices and further weaken demand, posing a fresh challenge for automakers such as Rivian ... . Rivian has struggled to ... , and intense competition from Tesla and traditional automakers. (Reuters)

The company is focusing on improving manufacturing efficiency ... . The R2 model is expected to open up a lower-price ... . (Reuters)

Despite these challenges, analysts expect Rivian's revenue to grow significantly in the upcoming quarterly report, although profitability remains elusive. (Reuters)