Irvine, California, June 17, 2026, 15:13 PDT
- Rivian will cut hundreds of positions, targeting less than 2% of its staff. The layoffs are hitting mostly customer roles like sales and marketing, according to a Reuters report.
- About a week after Rivian started shipping the R2, the cheaper SUV it hopes will pull in more buyers, the company made this move. Los Angeles Times
- Rivian stock finished Wednesday at $16.26, up 2%. The shares dropped earlier in the session after the R2 announcement and word of layoffs. Los Angeles Times
Rivian Automotive is cutting hundreds of jobs, looking to reduce expenses after launching deliveries of the R2 SUV. The company is targeting less than 2% of its staff with the latest layoff round. The R2 is Rivian’s push beyond its core premium buyer group. Reuters
R2 hits Rivian customers just as management tries to show growth minus deeper losses. The new model went out last week, making its debut while the company stays under pressure to balance expansion and red ink. Los Angeles Times
Rivian still hasn’t posted a full-year net profit. The company’s filing said it delivered 42,247 vehicles in 2025, bringing in $5.39 billion in revenue. But it reported a net loss of $3.63 billion. Rivian did post a full-year gross profit of $144 million—revenue beat production costs before operating expenses. SEC
Rivian has focused its layoffs in service and customer groups, like sales and marketing, Reuters reported. “We recently restructured a handful of teams within Rivian as we work to profitably scale our business,” a spokesperson said. The company said laid off staff can apply for other jobs. Reuters
Rivian is giving staff severance, benefits and help with career changes, Business Insider said. The company still says it’s confident in the R2 and thinks it can scale up the five-seat SUV. Business Insider
Rivian’s R2 ships now in a Performance version at $57,990, according to the Los Angeles Times. A Standard model is expected next year with a $44,990 starting price. The company says orders are open only for the Performance model right now, with a Premium trim coming in 2026 and the Standard trim set for 2027. Los Angeles Times
The R2 is moving closer to the core of the U.S. electric SUV segment, with Tesla’s Model Y still the main target. Rivian CEO RJ Scaringe told Business Insider U.S. buyers have an “extreme lack of choice” under $50,000. Scaringe also said matching Tesla’s look isn’t enough. Business Insider
Rivian expects little margin for error as it looks to 2026. The EV maker turned out 10,236 vehicles and delivered 10,365 in Q1. It kept its full-year delivery outlook at 62,000 to 67,000 units. SEC
Rivian shares closed up 33 cents at $16.26 on Wednesday, up 2%, according to the Los Angeles Times. The same report noted shares had dropped 7% back on June 9, the day R2 deliveries started. Investors remain tuned in to whether the R2’s arrival can boost volume but avoid margin hits. Los Angeles Times
Ivan Drury, director of insights at Edmunds, told the Los Angeles Times that layoffs might be one of the only quick ways Rivian can cut costs, saying it’s “the one lever they can pull to rightsize things.” Auto analyst Brian Moody said the layoffs probably aren’t tied to the R2’s early feedback, pointing instead to lukewarm demand for new EVs and for higher-priced items. Los Angeles Times
Spending is showing up elsewhere. Rivian dropped its target for adjusted core profit in 2027, saying it would miss that cash-profit goal as it pushes more money into research and development for autonomous driving. Uber in March said it would invest up to $1.25 billion in Rivian through 2031, linked to milestones. Uber expects to put 10,000 fully autonomous R2 robotaxis on the road beginning in 2028. Reuters
But there’s risk in these cuts. Service, sales and marketing are key for Rivian as more R2 models get to buyers. If ownership gets worse, any money saved could get eaten up by frustrated customers facing hold-ups or poor support. EV demand is still spotty. Ford and Honda have both slowed some electric vehicle plans. Los Angeles Times
Rivian is moving on two tracks right now, aiming a lower-priced SUV at a packed field while putting money into software and self-driving. The recent layoffs signal a focus on costs. How it handles the R2 rollout will show if the timing was right.
