A slowing EV market has prompted Rivian to slash more than 600 jobs across its workforce, despite the company’s expansion plans and having several new models in the pipeline.

The layoffs, which represent about 4.5 percent of Rivian’s staff, were announced soon after the company lowered its delivery forecast for the year, now expecting to sell fewer vehicles than in both 2023 and 2024.

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Most of the reductions are being made across commercial teams in Rivian’s servicing and sales divisions. Additionally, Chief executive RJ Scaringe told employees in an internal memo that the company is consolidating several departments into a single marketing organization, with Scaringe temporarily taking the helm himself.

“These are not changes that were made lightly,” Scaringe wrote. “With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions. This news is challenging to hear, and the hard work and contributions of the team members who are leaving are greatly appreciated.”

These job cuts, first reported by the Wall Street Journal, come just a month after Rivian made a separate round of layoffs, cutting approximately 225 jobs, also targeting its sales and service operations in both the United States and Canada.

Sales Crunch

Rivian reported a record 13,201 sales in the third quarter, marking a 32 percent rise over the previous period. That figure, however, was partly inflated by customers rushing to buy before the federal EV tax credit expired.

Deliveries are expected to drop sharply in the final quarter, with Rivian forecasting year-end sales between 41,500 and 43,500 vehicles. By contrast, the company delivered 50,100 units in 2023 and 51,579 in 2024, signaling a noticeable downturn as the broader EV market settles into a slower growth phase.

Next year, the electric car manufacturer plans to start production of the long-awaited R2. The upcoming model will be smaller than the current R1T and R1S and is expected to start at around $45,000. After it hits the market, Rivian will follow it up with the R3, R4, and R5.

Rivian has once again trimmed its delivery outlook for the year, now projecting it will finish 2025 with between 41,500 and 43,500 vehicles handed over to customers. Earlier forecasts had painted a more optimistic picture. In May, Rivian suggested it would finish 2025 with between 40,000 and 46,000 deliveries, which was itself a downward revision from an even earlier target of roughly 51,000 vehicles.

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To put these figures into perspective, Rivian sold a total of 50,100 vehicles in 2023 and 51,579 in 2024. While the electric car manufacturer would have inevitably hoped to see sales continue to grow throughout 2025, that hasn’t been the case.

Mixed Numbers

The revision arrives even after Rivian recorded its best sales quarter of the year. Still, the annual forecast hints that appetite for the R1T pickup and R1S SUV may be tapering off, a concern that pushed the company’s stock down nearly 10 percent.

During the past quarter, Rivian delivered a total of 13,201 vehicles and produced 10,720 at its facility in Normal, Illinois. That’s an increase of nearly 32 percent in third-quarter (Q3) deliveries, a surge driven in part by U.S. buyers hurrying to lock in tax credits, even through leasing, before they expired on Tuesday.

Rivian’s Big Hope

Rivian’s long-awaited mid-size R2 cannot come soon enough. It’s been in the works for a couple of years now and is scheduled to launch in the first half of 2026. It will initially be built at an expanded line at the company’s plant in Normal, Illinois, before moving to Rivian’s forthcoming multi-billion-dollar facility in Georgia.

During a recent interview with InsideEVs, Rivian Chief Executive RJ Scaringe noted that while a large car manufacturer like Chevrolet or Volkswagen could absorb the costs of a new model that does not prove popular upon launch, Rivian does not have the same luxury.

“For a big company that has lots of other products, you can absorb that not going well, and the business will be fine,” he said. “For a Rivian, it must go well.” Prices for the R2 will start at approximately $45,000, significantly undercutting the R1-series models that start at over $70,000.