Rivian cuts hundreds of jobs as R2 launch targets profitability

Rivian Automotive Inc. laid off hundreds of employees Tuesday, cutting less than 2% of its workforce as the EV maker pushes toward profitability with the launch of its most affordable model, the R2 midsize SUV.

The job cuts affected employees in Rivian's service and customer organization, which handles sales and marketing, a company spokesperson said. Rivian had about 15,200 employees at the end of last year.

"We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the company said in a statement.

The restructuring comes as Rivian begins customer deliveries of the R2, which started June 9 after an internal employee rollout in late April. The R2 Performance with Launch Package starts at $57,990, with a dual-motor all-wheel-drive system producing 656 horsepower and an EPA-estimated range of up to 330 miles. Rivian is targeting 20,000 to 25,000 R2 deliveries in 2026 within a total delivery guidance of 62,000 to 67,000 vehicles.

Tuesday's layoffs mark the fourth round of job cuts at Rivian since late 2024. In October 2025, the company eliminated more than 600 positions, or 4.5% of its workforce, in its third round of cuts that year. Founder and CEO RJ Scaringe had served as interim marketing chief after that round before the company hired Greg Revelle as its first chief customer officer in January 2026.

The R2 represents Rivian's bet on broadening its customer base beyond the premium R1T pickup and R1S SUV, which start above $70,000. A Premium R2 trim at $53,990 is expected in late 2026, with a Standard Long Range version at $48,490 arriving in early 2027 and a base variant at $44,990 in summer 2027.

Rivian has ramped up marketing efforts alongside the R2 launch, sponsoring the SXSW Festival in March, hosting a branded glamping experience at Coachella in April, and running a seven-city cross-country "R2 Block Party" tour. The company operates 39 Rivian Spaces across the United States and Canada, up 44% year-over-year in 2025, plus more than 140 Rivian Adventure Network charging stations with over 1,000 stalls.

The EV maker faces mounting pressure to achieve positive gross margins as it burns through cash scaling production. Rivian reported a net loss of $1.1 billion in the first quarter of 2026, according to its most recent filing. The company's stock has declined roughly 40% year-to-date, reflecting investor skepticism about the path to profitability in a competitive EV market where Tesla has slashed prices and legacy automakers are expanding their electric lineups.

This article is for informational purposes only and does not constitute investment advice.