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Rivian Cuts 600 Jobs, 4% of Workforce, Amid EV Market Challenges
23 Oct
Summary
- Rivian to lay off over 600 employees, around 4% of workforce
- Layoffs come as EV maker struggles with high costs, slowing market
- Rivian preparing to launch lower-cost R2 SUV model next year
In a move to cut costs, electric vehicle manufacturer Rivian Automotive is preparing to lay off over 600 employees, approximately 4% of its workforce. This comes just a month after the company conducted a smaller round of layoffs affecting 1.5% of its staff.
Rivian, which has struggled to achieve consistent profitability, faces a challenging environment with high production costs, a slowing EV market, and intense competition from industry giants like Tesla, Ford, and a growing number of Chinese rivals. The company has been focused on improving manufacturing efficiency at its Illinois plant while also preparing for the launch of its next-generation R2 models, which are expected to broaden Rivian's reach beyond the luxury segment.
Despite these headwinds, Rivian remains committed to its long-term vision. The upcoming R2 SUV, slated for launch next year, is expected to play a crucial role in the company's strategy to expand its customer base and drive growth in the increasingly competitive electric vehicle market.
