Rivian Lays Off Hundreds of Workers Days After R2 SUV Deliveries Begin

Rivian is laying off hundreds of workers just one week after it began deliveries of its highly anticipated R2 SUV, the company has confirmed. The company said the layoffs will affect less than 2% of its overall workforce, and that it was done to boost efficiency. This is at least the fourth round of cuts Rivian has made since the beginning of 2024.

The Wall Street Journal first reported the new round of cuts on Tuesday. Rivian said the cuts impact its service and customer teams, which include sales and marketing. "We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the company said in a statement.

Rivian had been looking to turn its first profit in 2027 after accumulating losses of around $30 billion to date. But Rivian pushed that goal back in March because of how much money it’s spending on developing autonomous vehicle technology. The profitability delay was revealed to investors alongside news that Uber plans to invest up to $1.25 billion in Rivian and purchasing as many as 50,000 R2 SUVs to be used as robotaxis.

Rivian has yet to demonstrate that it can develop such capabilities, though, as it currently only offers a hands-off, eyes-on-the-road feature. Why this matters: The layoffs come at a critical juncture for Rivian, which is trying to ramp up production and delivery of its electric vehicles while navigating the challenges of developing autonomous technology. The company's delay in achieving profitability and its reliance on investments from Uber raise questions about its long-term viability.

As the electric vehicle market continues to evolve, Rivian's ability to adapt and innovate will be crucial to its success. The layoffs may be a short-term efficiency move, but they also highlight the difficulties Rivian faces in balancing growth, innovation, and financial sustainability. With significant investments from Uber and a crowded electric vehicle market, Rivian must demonstrate its ability to deliver on its promises and achieve profitability in the near future.