Electric vehicle maker Rivian plans to lay off approximately 4% of its workforce, according to the Wall Street Journal. The report stated that the development would impact over 600 employees. However, the company has not provided further details.
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The news comes after a WSJ report in September that Rivian would cut about 1.5% of its workforce. A company spokesperson said that the previous layoffs impacted the commercial team as the automaker worked to “improve operational efficiency” for its upcoming R2 model, planned for launch in 2026.
The latest cuts follow changes to U.S. government policies that ended EV consumer tax incentives on September 30, a move expected to negatively affect electric vehicle sales. The credit offered up to $4,000 for used vehicles and $7,500 for new vehicles.
Certain Rivian R1S and R1T models only qualified for $3,750 in incentives, as its batteries complied with critical mineral sourcing requirements. To qualify for the remaining $3,750, the value of a vehicle’s battery components made or assembled in North America had to meet certain thresholds. However, RivianTrackr.com had identified a loophole that allowed owners to receive a $7,500 credit through commercial leases.
The automaker has implemented several measures in preparation for the launch of the aforementioned R2 SUV, which it reported remains on track despite posting a net loss of nearly $1 billion in the second quarter of this year.
Rivian also faces pressure to lower its costs ahead of R2’s launch. The company’s website lists the R1S and R1T with starting prices of approximately $77,000 and $71,000, respectively. The R2 has a listed starting price of $45,000.
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