Rivian Announces Workforce Reduction Ahead of R2 SUV Launch Amid EV Industry Challenges

Rivian Automotive (RIVN) is cutting less than 1.5% of its workforce—primarily in commercial operations—as part of cost-saving measures before the debut of its budget-friendly R2 SUV. The electric vehicle Maker maintains affected employees can transfer internally, signaling strategic realignment rather than retreat.

The restructuring coincides with mounting sector-wide pressures. A key $7,500 federal EV tax credit expires imminently, while revised fuel economy penalties threaten $100 million in anticipated regulatory credit revenue for Rivian. Competitors like General Motors and Volkswagen are already adjusting production schedules and headcounts in response.

Industry observers view the R2 launch as a pivotal test of Rivian's ability to balance austerity with growth. The model's success could demonstrate EV makers' capacity to adapt to subsidy reductions and tighter regulations through product innovation.