Rivian Implements Second Workforce Reduction in 2025 Amid R2 SUV Launch Preparations

Rivian, the electric vehicle (EV) manufacturer, has announced a reduction of approximately 150 employees, marking the company’s second workforce adjustment in 2025. This decision comes as Rivian intensifies its efforts to launch the R2 SUV, a more affordable addition to its lineup, slated for release next year.

The recent layoffs primarily affect the company’s commercial team, which encompasses sales and service operations. Rivian has assured that the affected employees are eligible for rehire and is encouraging them to apply for other open positions within the organization. This move follows a similar reduction in June 2025, where about 1% of the workforce, mainly from the manufacturing team, was let go.

Over the past two years, Rivian has undergone multiple workforce adjustments. In early 2024, the company laid off approximately 10% of its staff, followed by another minor reduction in April 2024. As of the beginning of 2025, Rivian’s global workforce stood at around 15,000 employees.

These strategic workforce reductions are part of Rivian’s broader initiative to streamline operations and enhance efficiency as it prepares for the R2 SUV launch. The R2 is anticipated to be a pivotal model for Rivian, aiming to capture a broader market segment with its affordability compared to the company’s existing offerings.

The EV industry is currently experiencing heightened competition and pricing pressures. Rivian’s decision to adjust its workforce aligns with its objective to remain agile and financially robust in this dynamic market. By focusing resources on critical areas such as the R2 development and optimizing operational efficiency, Rivian aims to strengthen its position in the EV sector.

In summary, Rivian’s recent workforce reduction is a calculated step to align its operations with strategic goals, particularly the successful launch of the R2 SUV. This approach reflects the company’s commitment to adaptability and resilience in the rapidly evolving electric vehicle landscape.