Foreign media sources report that Rivian, a U.S.-based electric vehicle manufacturer, plans to lay off over 600 employees, which makes up roughly 4.5% of its entire workforce.

The layoffs will mainly impact positions within the service and sales departments.

An internal memo from Rivian reveals that CEO RJ Scaringe mentioned the company is currently navigating demand fluctuations in the U.S. electric vehicle market. These layoffs are part of a structural adjustment aimed at supporting the launch of the new R2 model and achieving profitable growth.

Rivian representatives have not yet issued a response to these reports.

Back in late October, there were reports suggesting that Rivian had informed its employees about upcoming layoffs affecting approximately 4.5% of the workforce. Sources close to the matter confirmed that over 600 employees would be impacted.

Data indicates that Rivian employed around 15,000 people by the end of last year. In June of this year, Rivian already carried out a round of layoffs, letting go of about 140 employees.

This latest round of layoffs, involving over 600 employees, highlights the significant challenges Rivian is up against amidst U.S. policy shifts and slower-than-anticipated growth in electric vehicle demand.

Regarding financial performance, Rivian reported revenue of $1.56 billion in the third quarter of this year, marking a 78% increase year-on-year. However, its net loss attributable to common shareholders saw a slight uptick, reaching $1.17 billion. Nevertheless, thanks to a beneficial joint venture with Volkswagen and robust performance in its software and services division, Rivian posted a gross profit of $24 million in the third quarter. This marks the second consecutive quarter of positive gross profit for the company this year.

In terms of sales, Rivian's vehicle sales jumped by 32% year-on-year, totaling 13,201 units in the third quarter of this year. This surge was driven by U.S. consumers rushing to buy vehicles before federal subsidies expired. Despite this, the company has adjusted its 2025 delivery forecast downward, from a previous high estimate of 46,000 units to a range of 41,500 to 43,500 units.

Rivian has reaffirmed that production of its much-anticipated new R2 series models will kick off at its Illinois plant in the first half of next year.