Rivian, the upstart electric vehicle manufacturer, just announced plans to lay off nearly 10% of its workforce this coming January. This decision marks the company’s second small layoff within a few months, as Rivian prepares for the launch of its highly anticipated R2 SUV, priced at $45,000. These most recent cuts come just as deep reductions were made in late June 2023. At that time, the company announced plans to cut 1% of its global workforce.
These recent layoffs, which affected about 150 workers, largely shifted focus onto Rivian’s manufacturing team. This strategic decision is part of Rivian’s ongoing efforts to streamline operations in anticipation of the R2 SUV’s introduction next year. The firm started 2024 with about 15,000 global employees. This number is a testament to the historic impact of recent changes on its coal workforce.
Rivian has executed deep and repeated cuts to its workforce over the last two years. This speaks to their deep commitment to staying ahead of the curve with an ever-changing electric vehicle landscape. Rivian’s high valuation come at a time of increasing pricing pressures in the industry. Consequently, the industry leader is re-evaluating its entire model of operations and labor requirements.
The decision to reduce staff comes as Rivian seeks to enhance its production capabilities and efficiency ahead of the R2 SUV launch. The R2 model will be an important part of the company’s overall portfolio. As a result, it hopes to attract a bigger slice of the EV market. By eliminating positions from its manufacturing ranks, Rivian is hoping to better set itself up to compete in a fast-evolving environment.
