A Rivian R1S electric vehicle (EV) at a dealership and service center in San Francisco, California, United States, Tuesday, June 3, 2025.
David Paul Morris | Bloomberg | Getty Images
DETROIT – Rivian Automobile reportedly plans to lay off more than 600 people as the all-electric vehicle maker faces growing challenges in the market.
The Wall Street Journal, which first reported on the plans, said the layoffs would affect about 4 percent of the company’s employees. Rivian had just under 15,000 employees at the end of last year.
A source close to the plans confirmed the layoffs to CNBC and said additional details are expected to be shared with employees on Thursday. The person spoke anonymously because the news had not yet been made public.
Rivian and other electric vehicle makers are increasingly facing a tougher market than in recent years, due to changing regulations under the Trump administration, including the elimination of a $7,500 federal incentive for purchasing an electric vehicle.
Besides regulatory issues, Rivian also faces slower-than-expected demand for electric vehicles and a lack of new products until next year due to liquidity needs and profit losses. The company lost $1.1 billion in the second quarter.
Rivian’s vehicle sales rose 32% to 13,201 units year over year during the third quarter as buyers rushed to purchase an electric vehicle before federal incentives expired at the end of September, but the company’s 2025 delivery forecast was reduced by 46,000 units to between 41,500 and 43,500 vehicles.
In August, Rivian also reported a larger adjusted core loss this year, expecting it to be between $2 billion and $2.25 billion, compared to the previously forecast $1.7 billion to $1.9 billion.
Shares of Rivian were flat in Thursday afternoon trading. The stock is down about 3% this year.