Rivian Automotive Inc (NASDAQ:RIVN) is planning to lay off more than 600 employees, or roughly 4% of its workforce of about 15,000 as of the end of 2024, the Wall Street Journal reported.
The cuts are expected to primarily affect commercial roles, including sales and servicing departments.
Additional details about the layoffs will reportedly be shared with Rivian employees on Thursday.
The move comes as Rivian faces a more challenging environment for electric vehicles in the US, driven in part by regulatory changes under the Trump administration, including the elimination of the $7,500 federal tax credit for EV purchases.
Slower-than-expected demand for electric vehicles and the absence of new products until next year have also contributed to the company's financial pressures, with Rivian reporting a net loss of $1.1 billion in Q2.
The company’s vehicle sales, however, rose 32% year-over-year to 13,201 units in the third quarter as buyers rushed to take advantage of expiring federal incentives.
Despite this growth, Rivian narrowed its 2025 delivery forecast from a high of 46,000 units to a range of 41,500 to 43,500 vehicles.
The company has also revised its adjusted core loss expectations for 2025, now projecting a range of $2 billion to $2.25 billion, up from an earlier forecast of $1.7 billion to $1.9 billion.
Shares of Rivian edged 0.7% higher to about $13 on Thursday morning, down about 2% this year.