Rivian laid off hundreds of employees Tuesday, representing less than 2% of its workforce, according to the company. The cuts come just one week after the automaker began deliveries of its critically important R2 SUV.
The job reductions targeted service, sales, and marketing teams — areas Rivian has been scrutinizing as it works to contain costs. The company has never posted a quarterly profit and faces mounting pressure from investors to reach positive margins.
Rivian's cash position has been a concern since its IPO, though the R2 launch was widely viewed as a catalyst for boosting revenue. The company has not disclosed how many workers remain after today's reductions, but less than 2% of a workforce previously estimated at roughly 14,000 would amount to fewer than 280 jobs.
The layoffs arrive during a turbulent period for EV startups, as many struggle with slower-than-expected demand and tightening capital markets. Rival Lucid has also cut staff this year, while legacy automakers have dialed back EV investment.
Rivian has not commented on whether further reductions are planned. The company reiterated that it remains focused on scaling the R2 and improving operational efficiency to reach profitability.