Rivian is planning to lay off more than 600 employees, or about 4% of its total workforce, as part of ongoing cost-cutting efforts amid a challenging electric vehicle (EV) market, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The move follows a smaller round of layoffs about a month ago that affected roughly 1.5% of staff. Rivian has been working to streamline operations and reduce expenses as it continues to face high production costs, sluggish EV demand, and intensifying competition from automakers such as Tesla, Ford Motor, and several Chinese manufacturers.
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The company is focusing on improving manufacturing efficiency at its Normal, Illinois facility while preparing for the launch of its lower-cost R2 sport-utility vehicle in 2026. The new model is expected to expand Rivian’s reach beyond the premium EV segment, where it has primarily competed with its R1T pickup and R1S SUV.
Despite the cost-cutting measures, Rivian recently reported stronger production and delivery results for the third quarter of 2025, helping to ease concerns after supply chain disruptions slowed output earlier in the year.
See also: Rivian Plans U.K. and Europe Expansion With New Affordable R2 EV
The company said it built 10,720 battery-electric vehicles (BEVs) at its Illinois plant in the three months ending September 30, up from 5,979 units in the previous quarter. Deliveries also rose to 13,201 vehicles, exceeding expectations of 12,955 and keeping Rivian’s annual guidance on track.
