On October 23, sources with inside knowledge disclosed that electric vehicle (EV) maker Rivian intends to lay off roughly 600 employees. This decision comes as a response to the persistent volatility in the U.S. EV market. The layoffs will predominantly target commercial roles within the service and sales divisions. Given that Rivian's workforce is projected to reach approximately 15,000 employees by the end of 2024, the layoff ratio stands at around 4%.

This strategic move underscores the hurdles that EV manufacturers have been grappling with during the Trump era. Policies such as the scrapping of EV purchase tax credits and the rollback of fuel economy and emissions standards have contributed to an erratic market demand. Consequently, automakers have been compelled to pivot towards more profitable gasoline-powered vehicles.

In August, Rivian scrapped its key financial goals, attributing the decision to tariffs and policy alterations. The company revised its annual outlook, shifting from a forecast of a marginal profit to a break-even scenario in terms of gross profit. This latest round of layoffs follows closely on the heels of Rivian's confirmation last month of a 1.5% reduction in its workforce.