A Rivian R2 SUV during the final assembly and inspection process at the manufacturer’s plant in Normal, Illinois on May 19. (Scott Olson/Getty Images)
key takeaways:
- The job cuts represent less than 2% of Rivian’s workforce.
- The move comes about a week after Rivian began customer deliveries of its R2 line of plug-in SUVs.
- Rivian has made several rounds of job cuts in the past year to rein in costs as it seeks sustained profitability.
Rivian Automotive is cutting hundreds of jobs to reduce costs while it introduces a new line of electric vehicles.
The job cuts, which amount to less than 2% of the company’s workforce, are concentrated in service and customer operations, according to a spokesperson. Rivian had more than 15,200 employees at the end of last year.
The move comes about a week after Rivian began customer deliveries of its R2 line of plug-in SUVs, a significant new model aimed at giving the brand a lower-cost offering. EV makers are grappling with consumer concerns over low demand in the US and high prices for new vehicles.
Rivian has made several rounds of job cuts in the past year to rein in costs as it seeks sustained profitability. After small cuts in September and June, in October the company laid off about 600 employees as part of structural adjustments ahead of the R2 launch.
Rivian shares fell 5.2% at 1:24 p.m. in New York. The Wall Street Journal earlier reported the new round of layoffs.
