Rivian to Cut 600 Jobs as Market Headwinds and Policy Shifts Mount

Rivian Automotive is preparing to lay off more than 600 employees, roughly 4% of its workforce.

The layoffs come as the EV maker grapples with a tougher U.S. market shaped by policy changes under the Trump administration and slower demand growth, recent reports stated.

Layoffs and production slowdowns

The layoffs, first reported by The Wall Street Journal, are expected to be confirmed to employees later this week, according to a source cited by CNBC. The media outlet noted that its source is anonymous as the company’s plans are yet to be made public.

Despite a 32% year-over-year jump in third-quarter deliveries to 13,201 vehicles, Rivian is tightening its 2025 forecast to between 41,500 and 43,500 units, down from earlier estimates of up to 46,000.

The company’s delivery boost was partly driven by buyers rushing to purchase EVs before the expiration of the $7,500 federal tax credit at the end of September. However, with that incentive now gone, analysts expect a dip in near-term orders.

Losses and changing policies

Rivian also continues to face steep financial losses, reporting a $1.1 billion deficit in the second quarter and warning that its adjusted core loss could widen to as much as $2.25 billion this year, up from previous projections. A gap in new product launches until 2026 has further constrained the company’s growth potential.

Broader shifts in federal policy under the Trump administration, particularly the rollback of EV purchase incentives, have put pressure on multiple automakers trying to maintain profitability amid rising production costs.

For Rivian, which employs around 15,000 people, the layoffs are part of a broader effort to conserve cash and streamline operations ahead of its next-generation models, such as the R2, the company’s response to the best-selling Tesla Model Y, and the R3 and R3X, which are expected to be ven more affordable.

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