Job Cuts at Rivian
Slow growth in the electric vehicle market has forced Rivian to cut over 600 jobs, despite expansion plans and the development of new models. These cuts represent approximately 4.5% of the company’s total workforce. The decision was announced shortly after Rivian lowered its delivery forecast for the year, expecting sales to be lower than in 2023 and 2024.
Key Changes in Company Structure
Most of the cuts affected commercial teams in Rivian’s sales and service departments in the US and Canada. CEO RJ Scaringe informed employees in an internal memo that the company is consolidating several departments into a single marketing organization, with Scaringe temporarily leading this direction himself.
This is not a decision that was made easily. Due to the changing operational environment, we had to rethink how we scale our go-to-market functions. This news is hard to digest, and we highly appreciate the hard work and contribution of those team members who are leaving.
Previous Cuts and Market Context
These cuts, first reported by the Wall Street Journal, occurred just a month after the previous wave of layoffs, when Rivian cut about 225 jobs, also focused on sales and service in North America.
Sales Dynamics and Forecasts
Rivian reported a record 13,201 sales in the third quarter, which is 32% more than the previous period. However, this figure was partly inflated by customers rushing to buy electric vehicles before the expiration of the federal EV tax credit. Deliveries are expected to drop sharply in the last quarter, with a year-end sales forecast between 41,500 and 43,500 vehicles. For comparison, in 2023 the company delivered 50,100 units, and in 2024 – 51,579, indicating a noticeable slowdown against the backdrop of the overall electric vehicle market.
Future Plans
Next year, the electric vehicle manufacturer plans to start production of the long-awaited R2 model. The future model will be smaller than the current R1T and R1S and is expected to have a starting price of around $45,000. After entering the market, Rivian plans to introduce the R3, R4, and R5 models.
These changes are taking place in the context of a global slowdown in demand for electric vehicles, affecting many manufacturers. Rivian, as a young company, faces additional challenges, including the need to balance investments in new developments with current financial stability. Such cuts may help optimize costs but also raise questions about the company’s long-term strategy in a market of uncertainty.