A Rivian R1S electric vehicle (EV) at a dealership and service center in San Francisco, California, US, on Tuesday, June 3, 2025.
David Paul Morris | Bloomberg | Getty Images
DETROIT – Rivian Automotive reportedly plans to lay off more than 600 people as the all-electric vehicle maker faces growing market challenges.
The Wall Street Journal, which first reported the plans, said the layoffs will affect roughly 4% of the company’s workers. Rivian had just under 15,000 employees at the end of last year.
A source familiar with the plans confirmed the layoffs to CNBC and said additional details are set to be shared with employees Thursday.
Rivian and other EV manufacturers are increasingly facing a more challenging market than they did in recent years amid changing regulations under the Trump administration, including the elimination of a $7,500 federal incentive for purchasing an EV.
Aside from regulatory issues, Rivian also faces slower-than-expected EV demand and a lack of new products until next year amid needs for cash and earnings losses. The company lost $1.1 billion during the second quarter.
Rivian’s vehicle sales increased 32% to 13,201 units year over year during the third quarter as buyers hurried to purchase an EV before the federal incentives expired at the end of September, but the company’s 2025 delivery forecast was narrowed from as many as 46,000 units to between 41,500 to 43,500 vehicles.
In August, Rivian also flagged a bigger adjusted core loss this year, expecting it to between $2 billion and $2.25 billion, compared with $1.7 billion to $1.9 billion previously forecast.
Shares of Rivian were level during trading Thursday morning. The stock is off roughly 3% this year.