Rivian layoffs: Electric SUV maker slashes hundreds of jobs in bid for profitability after R2 launch

Rivian Automotive initiated job cuts affecting fewer than 2% of its workforce on March 12, 2024, as the electric SUV maker aims to achieve profitability. This reduction, impacting approximately 300 employees primarily in service and customer departments, follows a larger layoff of over 600 workers in October 2023. The company confirmed the layoffs in a statement, citing a need to "profitably scale our business." Despite generating $5.4 billion in revenue last year, Rivian reported a $3.6 billion loss and has not achieved an annual profit since its founding in 2009. In the first quarter of 2024, its automotive segment incurred a loss of roughly $6,000 per vehicle sold. These workforce adjustments occur shortly after the public launch of its new R2 mid-size SUV, a model intended to contribute to the company's strategy of offering more affordable electric vehicles. Employees affected by the current layoffs have the opportunity to apply for other open positions within Rivian.