Electric truck maker Rivian is conducting another round of layoffs, cutting over 600 jobs, which amounts to four percent of its headcount, as the company tries to reduce costs amidst a pullback in the EV industry. This is the EV company’s second round of layoffs in a month.
The Wall Street Journal reports that Rivian, the electric vehicle manufacturer known for its pickup trucks and SUVs, is laying off more than 600 employees, representing around four percent of its total workforce, according to people familiar with the matter. The company had just under 15,000 employees at the end of last year. This marks the second round of job cuts in a month, following a smaller layoff affecting 1.5 percent of its staff, which Rivian said was aimed at reducing costs ahead of launching a more affordable SUV in 2026.
The electric vehicle industry is facing significant challenges due to the rollback of policies that supported EV adoption. The expiration of a $7,500 federal tax credit for EV buyers is expected to significantly impact sales. Furthermore, these policy changes have disrupted the market for compliance credits, which have been a crucial source of profitability for Rivian and other EV manufacturers. Rivian has estimated that the changes could result in approximately $100 million in revenue being delayed.
Despite a 32 percent increase in vehicle sales to 13,201 units in the third quarter, Rivian has lowered its full-year delivery guidance to between 41,500 and 43,500 vehicles, down from its previous forecast of up to 46,000 deliveries. The company is set to report its full quarterly earnings on November 4.
As a publicly-traded company since 2021, Rivian has been under pressure to reduce expenses while preparing for the launch of its next model, the R2 SUV. The R2 is expected to have a starting price of around $45,000, making it more affordable than the company’s current R1T pickup and R1S SUV, which start at $70,990 and $76,900, respectively. Rivian anticipates higher demand for the R2 compared to its current models.
Despite losing $1.1 billion in the second quarter, Rivian has stated that it has sufficient funds to launch the R2. However, the company recognizes the need to streamline its operations and reduce costs to navigate the challenging market conditions and ensure long-term success in the competitive electric vehicle industry.
Rivian CEO RJ Scaringe taunted proponents of gas-powered cars in 2023, when the Democrat plan to force EVs on Americans was in full swing:
Rivian CEO, RJ Scaringe, recently compared the purchase of internal combustion engine (ICE) vehicles to “building a horse barn in 1910.”
Rivian exceeded market expectations by delivering 12,640 EVs in the second quarter of this year. The company is on track to meet its annual production guidance of 50,000 vehicles. “The performance and drivability of an EV makes it so much more desirable than an alternative,” Scaringe said. He added, “Buying a non-EV just feels very old,” adding that while the environmental responsibility is a factor, he also feels that regular ICE cars are boring.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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