Rivian Lays Off Hundreds Amid R2 SUV Launch and Profitability Push
Rivian laid off hundreds of employees (less than 2% of its workforce) on June 16, 2026, primarily in service and customer teams, as it seeks to cut costs and achieve profitability. The layoffs come just after deliveries began for its crucial R2 SUV, which aims to transform the company into a mainstream EV brand. Rivian lost $3.6 billion in 2025, delivering only 42,247 vehicles, and faces additional pressure from the expired federal EV tax credit. This marks at least the fourth round of cuts since 2024.
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Rivian cuts under 2% of workforce to rein in costs
Rivian is cutting fewer than 2% of its employees, amounting to hundreds of jobs, to control costs as it works toward profitability. The reductions affect the service and customer organization, including sales and marketing teams. The company had 15,232 employees at the end of last year. This comes as Rivian rolls out the R2 SUV, a smaller and more affordable model, and after it said it no longer expects to achieve its 2027 adjusted core profit target due to increased R&D spending on autonomous driving. Rivian posted a $3.6 billion loss last year while delivering 42,247 vehicles. The company previously cut over 600 roles in October. In March, Rivian spun off its micromobility business 'Also' with a $105 million investment, and Uber agreed to invest up to $1.25 billion in Rivian for autonomous vehicles.
Yahoo FinanceRivian cuts under 2% of workforce to rein in costs
Rivian is cutting fewer than 2% of its employees, amounting to hundreds of jobs, to control costs as it works toward profitability. The cuts affect the service and customer organization, including sales and marketing teams. The company had 15,232 employees at the end of last year. This follows a previous reduction of 4.5% of staff in October. Rivian is rolling out the R2 SUV, a smaller and more affordable model, and has abandoned its 2027 adjusted core profit target due to increased R&D spending on autonomous driving. The company posted a $3.6bn loss last year while delivering 42,247 vehicles. In March, Rivian spun off its micromobility business into a startup called 'Also', which secured $105m from Eclipse Ventures. Uber also agreed to invest up to $1.25bn in Rivian, with $300m upfront, contingent on autonomous driving milestones.
Yahoo FinanceRivian lays off hundreds of workers days after launching critical R2 SUV
Rivian laid off hundreds of workers on June 16, 2026, roughly one week after the first deliveries of its crucial R2 midsize SUV. The cuts affected less than 2% of its 15,232-person workforce, concentrated in service and customer teams. The layoffs mark at least the fourth round since 2024 as the company struggles with profitability. Rivian lost $3.6 billion in 2025 while delivering only 42,247 vehicles, and its automotive segment lost about $6,000 per vehicle in Q1 2026. The $7,500 federal EV tax credit expired under the Trump administration, further pressuring affordability for the $45,000 R2. The company has pushed back its profitability timeline due to heavy spending on autonomous vehicle technology. Despite the challenges, Uber agreed to invest up to $1.25 billion and purchase up to 50,000 R2 SUVs for a planned robotaxi fleet.
Yahoo FinanceRivian Lays Off Hundreds of Workers Days After R2 Launch
Rivian laid off hundreds of employees on June 16, 2026, roughly one week after the first deliveries of its crucial R2 midsize SUV. The cuts affected less than 2% of the workforce, primarily in service and customer teams, as the company restructures to scale profitably. Rivian lost $3.6 billion in 2025 while delivering 42,247 vehicles, and its automotive segment lost about $6,000 per vehicle in Q1 2026. The layoffs mark at least the fourth round of cuts since 2024, driven by structural financial pressures including the expiration of the $7,500 federal EV tax credit under the Trump administration. The R2, priced near $45,000, is intended to break the pattern of losses by spreading fixed costs across higher volume. Despite the cuts, Rivian secured a major deal with Uber, which agreed to invest up to $1.25 billion and purchase up to 50,000 R2 SUVs for a planned robotaxi fleet.
Yahoo FinanceRivian Cuts Less Than 2% of Workforce Amid R2 SUV Launch
Rivian is conducting a small round of layoffs affecting less than 2% of its workforce, primarily in service and customer organization teams including sales and marketing. The cuts come as the electric vehicle maker begins deliveries of its third and most important consumer vehicle, the midsize R2 SUV, which competes with Tesla's Model Y. The company stated the restructuring aims to scale more efficiently and achieve profitable growth. Affected employees are eligible for rehire and will receive severance packages and career-transition services. Rivian's previous models, the R1T pickup and R1S SUV, have established the brand but not achieved net profitability. The R2 deliveries started on June 9.
All Content from Business InsiderRivian lays off hundreds of workers amid R2 SUV launch and profitability push
Rivian announced on Tuesday it is laying off hundreds of employees, representing less than 2% of its workforce, as the electric vehicle maker seeks to reduce losses. The layoffs affect service and customer teams, according to a company spokesperson. The announcement comes just one week after Rivian officially launched deliveries of its R2 SUV, a vehicle the company hopes will transform it from a niche luxury EV maker into a more mainstream brand like Tesla. Rivian has never turned an annual profit, losing $3.6 billion last year while delivering only 42,247 vehicles. Its automotive segment lost about $6,000 per vehicle in the first quarter of this year. The company faces a challenging market under the Trump administration, including the elimination of a $7,500 federal EV purchase incentive. This is Rivian's second round of layoffs in recent months, following a reduction of over 600 workers in October 2025.
US Top News and AnalysisRivian Lays Off Hundreds of Workers Amid R2 SUV Launch and Cost-Cutting Efforts
Rivian announced on Tuesday it is laying off hundreds of employees, representing less than 2% of its workforce, as the electric vehicle maker seeks to narrow losses. The layoffs primarily affect teams in service and customer segments, according to a company spokesperson. This move comes just a week after Rivian officially launched deliveries of its key new vehicle, the R2 SUV, which is intended to transform the company into a more mainstream EV brand. Rivian has never turned an annual profit, losing $3.6 billion last year while delivering only 42,247 vehicles. The company's automotive segment lost about $6,000 per vehicle in the first quarter of this year. The EV market faces additional challenges under the Trump administration, including the elimination of a $7,500 federal EV purchase incentive. This is Rivian's second major layoff in recent months, following a reduction of over 600 workers in October.
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