TLDR
- Rivian is laying off more than 600 employees, representing about 4% of its workforce, marking its second round of cuts in recent months.
- The company cut 1.5% of its staff in September and had just under 15,000 employees at the end of last year.
- The layoffs come as Rivian works to reduce costs while developing its more affordable R2 SUV, scheduled to launch in early 2026.
- Rivian expects to lose approximately $100 million in revenue due to policy changes in vehicle emission standards and fuel economy requirements.
- The $7,500 federal tax credit for electric vehicle purchases has expired, creating challenges across the EV industry.
Rivian is cutting more than 600 positions from its workforce. The layoffs represent approximately 4% of the company’s employees.
This marks the second round of job cuts at the electric vehicle manufacturer in recent months. In September, Rivian reduced its workforce by 1.5%.
The company employed just under 15,000 people at the end of last year. The new cuts will bring that number down further as Rivian works to manage its cash reserves.
The layoffs come as Rivian develops its R2 SUV model. The more affordable sport utility vehicle is scheduled to launch in early 2026.
These workforce reductions are happening as the electric vehicle industry faces changing conditions. The $7,500 federal tax credit that encouraged EV purchases has expired.
The credit expiration is creating pressure across the entire EV sector. Legacy automaker General Motors has already recorded a $1.6 billion write-down related to these changes.
Policy Changes Hit Revenue Projections
The Trump administration is revising vehicle emission rules. The government is also relaxing standards that penalize automakers for missing federal fuel economy targets.
These policy shifts are creating financial pressure for Rivian. The company expects to lose approximately $100 million in revenue due to these developments.
Rivian plans to report its third quarter 2025 earnings in early November. The results will provide more insight into how these changes are affecting the company’s financial performance.
The impact of reduced federal support is visible in other EV makers’ results too. Tesla released its third quarter earnings on Wednesday, showing a 40% drop in operating profits.
Tesla’s carbon credit revenue fell 44% in the quarter. Carbon credits have been a revenue source for EV manufacturers in recent years.
Global EV Market Shows Mixed Signals
Despite challenges in the U.S., global EV sales hit 2.1 million units in September. China led the worldwide market in electric vehicle purchases.
However, enthusiasm for EVs is cooling in multiple markets. The pushback on EV adoption is taking shape beyond U.S. borders.
Rivian shares currently carry a Hold rating from Wall Street analysts. The rating is based on input from 23 analysts covering the stock.
Seven analysts rate the stock as a Buy. Eleven have assigned Hold ratings, while five recommend selling.
The average price target from analysts stands at $13.68. This suggests a potential gain of about 5% from current trading levels.
The company is balancing cost reduction with its product development timeline. The R2 SUV represents Rivian’s move into more affordable electric vehicle offerings.
Rivian expects the new model to help expand its customer base. The more accessible price point could attract buyers who found earlier models too expensive.
The September layoffs affected less than 1.5% of staff. The current round of cuts is larger, touching 4% of the workforce.
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