Electric vehicle manufacturer Rivian has revealed its intention to lay off roughly 225 staff members, which accounts for less than 1.5% of its overall workforce. This strategic move is aimed at trimming expenses and gearing up for the launch of its budget-friendly SUV, the R2, scheduled for next year. The decision comes as a reaction to the financial strain caused by the expiration of federal tax credits for electric vehicles and shifts in policy. Despite reporting a loss of $1.1 billion in the second quarter, Rivian has assured that it possesses adequate financial resources to introduce the R2 and projects that the demand for this model will outstrip that of its current lineup. Presently, the entire automotive sector is grappling with challenges stemming from policy alterations and market fluctuations, necessitating a delicate equilibrium between cost management and meeting market demand to ensure long-term viability.