Rivian Lays Off 1% Workforce As It Gears Up For R2 Production Early Next Year: Report

EV startup Rivian Automotive (RIVN) has reportedly laid off around 140 employees, or roughly 1% of its workforce, as it prepares for the launch of its R2 SUV in 2026.

TechCrunch reported on Thursday that the employees who were let go were mostly part of the company’s manufacturing team. The layoffs have been ongoing since Wednesday, the report added, citing anonymous sources.

Rivian told TechCrunch that the decision to reduce its workforce is part of its effort to improve operational efficiency ahead of the launch of the R2 SUV. Affected employees are being encouraged to apply for other positions within the company, they added.

Rivian had about 15,000 employees as of the end of 2024.

The company is now gearing up to start production of its lower-priced R2 SUV in the first half of 2026 at its factory in Normal, Illinois.

The company presently manufactures and delivers only two consumer vehicles: the R1S SUV and the R1T truck, priced around $70,000. It also sells electric delivery vans to fleet owners, such as Amazon.com Inc., priced at around $80,000.

The R2, however, is expected to be priced around $45,000 and compete against Tesla Inc’s (TSLA) best-selling Model Y SUV.

The company is currently undertaking construction at its Normal plant to prepare it for R2 manufacturing. Rivian is also planning to shut down its production line at its factory in Illinois for about a month in the second half of the year to prepare for the start of production of R2.

The company expects to deliver 40,000 to 46,000 vehicles this year, a decrease from the 51,579 deliveries reported in 2024, in part due to the shutdown.

On Stocktwits, retail sentiment around Rivian is trending in the ‘bearish’ territory.

The stock is up by about 1% as of Thursday afternoon. It has risen by about 4% this year and fallen by about 6% over the past 12 months.

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