US electric vehicle maker Rivian started on Thursday another round of job cuts.
The move marks the fourth staff reduction in less than two years as the company seeks to slowdown its cash burn rate ahead of its major product launch scheduled for the first half of 2026.
The latest reductions, effective Thursday across both the US and Canada teams, affect “less than 1.5%” of Rivian’s total workforce.
The company founded and led by RJ Scaringe also maintains small teams in Europe as it prepares to expand into the region in 2027 with the R2 SUV before expanding the lineup with the R3 model.
“We have made some recent changes to the commercial team as part of an ongoing effort to improve operational efficiency for R2,” a Rivian spokesperson told the Wall Street Journal on Thursday.
The move follows several previous rounds of cuts. In June, Rivian laid off about 140 employees, or roughly 1% of its workforce, citing process inefficiencies.
In 2024, it eliminated about 10% of jobs in February, followed by a further 1% reduction in April.
The R2 SUV — expected to launch in the first half of 2026 with a starting price of around $45,000, about $25,000 below Rivian’s current entry-level R1T — is central to the company’s next growth phase.
Rivian plans to gradually ramp up production of the model throughout its first year.
The company said affected employees are eligible for rehire and encouraged to apply for open positions.
Rivian shares closed 5% lower on Thursday at $13.70. The stock reached its all time low in April 2024 at $8.26 after having peaked at $179.47 shortly after the IPO in late 2021.
