(Reuters) – Electric-vehicle maker Rivian said on Tuesday it is laying off less than 2% of its workforce as part of ongoing efforts to scale its operations profitably.
The company, which employed 15,232 people as of December last year, has said it no longer expected to meet its 2027 adjusted core profit target as it ramps up spending on research and development to accelerate its autonomous driving roadmap.
The layoffs come after Rivian began production of its smaller R2 SUVs in April, with deliveries underway, as the company bets on a lower-cost model to broaden demand and strengthen its path to profitability.
“We recently restructured a handful of teams within Rivian as we work to profitably scale our business,” a company spokesperson told Reuters via email.
The company said the cuts hit Rivian’s service and customer organization, including sales and marketing teams. Those affected may apply for other open roles at Rivian.
The Wall Street Journal, which had reported the job cuts earlier, said that the changes would be effective Tuesday.
Rivian cut more than 600 jobs, or 4.5% of its workforce, in October as it grappled with softer demand after the expiry of key U.S. tax credits in September.
Reporting by Juby Babu in Mexico City and Anzar Mehraj in Bengaluru; Editing by Vijay Kishore and Diti Pujara
