Rivian is downsizing 600 employees as part of a strategy shift.

Rivian Responds to Market Fluctuations with Job Reductions

US-based Rivian Automotive Inc. plans to lay off approximately 600 employees as a measure against fluctuations in the electric vehicle market. This decision constitutes about 4% of the company’s workforce.

Reasons for Layoffs and Targeted Areas

According to reports from Bloomberg, the layoffs will focus on the service and sales departments. Additionally, the company's decision to focus on commercial roles is considered part of its effort to adapt to current market conditions.

Rivian’s Previous Layoff Actions

In August 2023, Rivian had also announced layoffs affecting 1.5% of its workforce. The company continues to make such decisions to reduce costs due to increasing tariffs and changing policies.

Decline in Electric Vehicle Demand and Its Effects

These recent updates highlight the risk that policies from the Donald Trump administration may further undermine an already fragile electric vehicle demand. The administration has removed tax incentives for electric vehicle purchases and has moved to invalidate regulations that would lead manufacturers to focus on gasoline models.