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Rivian lays off hundreds, under 2% of staff, a week after R2 launch
Electrek • • business
Key Points:
- Rivian laid off up to 300 employees, less than 2% of its workforce, primarily from service and customer-facing teams, just one week after launching deliveries of its crucial R2 SUV.
- This marks at least the fourth round of layoffs in 2024, following previous cuts linked to slowing EV demand and preparations for the R2 launch.
- The R2 SUV is pivotal to Rivian’s strategy to transition from a niche premium automaker to a mainstream, profitable company, with base models starting at $45,000 expected in 2027.
- Despite these efforts, Rivian has accumulated $27 billion in losses and has delayed its profitability target beyond 2027 due to heavy investment in autonomous driving technology.
- The layoffs raise concerns about customer service quality during a critical product launch, while Rivian simultaneously pursues ambitious autonomy goals tied to a potential $1.25 billion Uber robotaxi deal.
