On September 5, The Wall Street Journal reported that Rivian (RIVN.O), an American electric vehicle manufacturer, is implementing layoffs as part of a broader strategy to cut costs and gear up for the launch of a more budget-friendly SUV model next year. The layoffs will impact roughly 1.5% of Rivian's workforce, which translates to about 225 employees. As of the end of the previous year, the company boasted a total workforce of approximately 15,000 individuals.

A spokesperson for Rivian clarified that these layoffs are a strategic move to bolster operational efficiency, particularly in anticipation of the R2 model's release. The commercial team has undergone corresponding restructuring to align with these goals. Employees affected by the layoffs will be eligible for rehire and are actively encouraged to explore and apply for other open positions within the company. These layoffs will take immediate effect in both the United States and Canada.

Furthermore, in light of the impending expiration of the $7,500 federal electric vehicle tax credit policy at the end of this month, numerous American automakers have devised plans to scale back production. This move by Rivian can also be seen as a response to this broader industry trend, aiming to maintain competitiveness and financial stability in a changing market landscape.