Rivian Cuts Under 2% of Staff Days After $57,990 R2 SUV Launch
RIVN•Rivian cut less than 2% of its 15,232-strong workforce, laying off several hundred service and customer operations staff as it restructures for profitability. The move follows first deliveries of the $57,990 performance R2 SUV and comes after investors pushed shares down over 7% on missed 2027 profit targets.
1. Restructuring and Layoff Details
Rivian announced cuts of less than 2% of its 15,232-strong workforce, affecting several hundred employees in service and customer operations as it restructures to improve profitability. Affected staff received severance packages and have been invited to apply for other open roles within the company.
2. R2 SUV Deliveries and Pricing
The layoffs follow the launch of the $57,990 performance version of the R2 SUV, with initial customer deliveries beginning one week earlier. Rivian plans to introduce a standard R2 variant priced at $44,990 next year to broaden affordability.
3. Financial Performance and Profit Targets
Rivian reported a $3.6 billion loss in the previous year and recently abandoned its 2027 adjusted core profit goal. The company has undertaken multiple cost-cutting measures to drive consistent profitability.
4. Market Reaction and Future Outlook
Investors reacted to the R2 debut and profit concerns by sending shares down over 7% on delivery day and 5.2% more recently. Continued EV market cooling and prior workforce reductions of 4.5% in October and about 200 jobs in September underscore ongoing operational challenges.
