Rivian Trims Production Team as R2 Launch Preparations Intensify

Rivian has laid off around 140 employees, or about 1% of its workforce, in a targeted move aimed at streamlining operations ahead of the upcoming launch of its R2 all-electric crossover SUV. The cuts, which primarily affected the automaker’s manufacturing division, are the latest in a series of workforce reductions Rivian has made in recent months.

Manufacturing division hit as Rivian tightens operations

The layoffs began Wednesday and impacted salaried employees in the manufacturing team, according to several former workers who spoke anonymously to TechCrunch. Some were reportedly told their positions created “process inefficiencies,” prompting their elimination.

A Rivian spokesperson confirmed the decision in an emailed statement: “We have made the difficult decision to reduce a small number of our salaried manufacturing employees as part of an ongoing effort to improve operational efficiency for R2,” the spokesperson stated.

Affected employees were encouraged to apply for other roles within the company.

Latest reduction follows earlier rounds of job cuts

Rivian entered 2024 with over 14,800 employees across North America and Europe, based on its annual filing with the United States Securities and Exchange Commission (SEC). However, the company has since implemented three workforce reductions over the past years: a 10% cut in early 2024, a 1% cut in April 2024, and this most recent downsizing. 

The automaker’s R2 SUV, intended as a more affordable and mass-market EV, is scheduled to enter production in 2026, making cost management a key focus in the lead-up to launch. In a recent video, Rivian stated that its flagship factory in Normal, Illinois is currently undergoing a major expansion to accommodate new models and improve efficiency. A second plant in Georgia is also in the works.

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