Here’s what’s happening at Rivian. They’re laying people off. Again. Third time since early 2024. And this is all thanks to one vehicle – the R2.
The Latest Round of Cuts
Rivian manufacturing team layoffs: R2 launch news broke in September 2025 when the company cut about 150 workers. That is about 1.5% of their workforce. Doesn’t seem like a lot until you realize they have been doing this all year. They released more than 140 manufacturing employees in June. That represented 1% of the entire staff. Then in July, more cuts. Now September brings another round.
The company is calling it about “operational efficiency.” That’s corporate speak for “we need to save money before the R2 shows up.”
Why They’re Doing This
The R2 is expected to be launched in the first half of 2026. It’s their $45,000 SUV that’s meant to actually make them serious money. The companies’ existing vehicles, the R1T truck and the R1S SUV, start at over $70,000. They’re great trucks, but not everybody can afford them.
The R2 changes that game. It’s smaller, cheaper, and aimed at regular people, not just rich tech bros. The problem is, getting it to market is expensive as hell.
They’ve been building out their Normal, Illinois, plant to handle R2 production. They scrapped plans for a Georgia factory because it would’ve cost too much. Now everything’s riding on Illinois.
Who’s Getting Hit
The cuts aren’t random. They’re targeting specific teams. Manufacturing took a hit. The commercial team got downsized too.
Some of these people have been with Rivian for years. They helped build the company from nothing into an actual automaker producing real vehicles. Now they’re getting walked out because the company needs to tighten its belt.
One source told reporters the layoffs hit hard in the engineering and production planning departments. These are skilled workers who know how to build electric vehicles. Not exactly easy positions to fill when you need them back.
The Money Situation
Rivian’s burning through cash. They’ve got about 15,000 employees total and they’re not profitable yet. Every vehicle they sell loses them money right now.
The R1 platform costs way too much to build. CEO RJ Scaringe has said the R2 will cost less than half of what the R1 costs to manufacture. That’s huge if they can pull it off.
But getting there means cutting costs everywhere else. That includes headcount.
They did get a billion-dollar investment from Volkswagen. That helps. But it’s not enough to stop the belt-tightening.
What Reddit’s Saying
Over on Reddit, Rivian employees and fans have been talking about the layoffs. Some current workers say morale’s taking a beating. People are worried they’re next.
Others point out this is just how the auto industry works. Ford and GM have done massive layoffs over the years. Tesla went through rough patches too.
One user said, “They’re trying to survive long enough to get the R2 out. If that vehicle doesn’t succeed, none of this matters anyway.”
Fair point.
The R2 Validation Builds
Here’s something interesting – while they’re cutting staff, they’re also building test versions of the R2. These “validation builds” are going through their pilot line right now.
RJ Scaringe posted photos of them back in May. They look good. Real vehicles, not just concepts.
The company says R2 production is still on track for early 2026. They’re taking $100 deposits right now. Over 100,000 people have supposedly reserved one.
If those numbers hold up, the R2 could save the company. That’s a lot of pressure for one vehicle.
The Bigger Picture
EV start-ups are in a tough spot right now. The market’s not growing as fast as everyone predicted. Legacy automakers are catching up. Tesla’s dominating the space and dropping prices.
Rivian’s got good products. Most reviews of the R1T and R1S are positive. But good products don’t matter if you can’t make money selling them.
The Rivian manufacturing team layoffs and R2 launch strategy make sense from a business perspective. Cut costs now. Launch the R2. Start making profitable vehicles. Then rebuild the workforce.
The problem is, you need talented people to execute that plan. And you just laid off a bunch of them.
What Workers Are Saying
Some former employees have talked about the layoffs online. Most are understanding but frustrated.
One said the severance packages were decent. Another mentioned the cuts seemed rushed and poorly planned.
Current employees say there’s anxiety about who’s next. When you’ve had three rounds of layoffs in less than two years, people start updating their resumes.
The Timeline
The first half of 2026 is when R2 production starts. That’s six to nine months away as of today in October 2025.
They’ve already completed the factory expansion in Normal. The equipment’s being installed. The pilot line is running test vehicles.
If everything goes smoothly – big if – customers should start getting R2s by summer 2026.
That’s assuming no more delays, no supply chain issues, and no quality problems. Given how 2024 and 2025 have gone for Rivian, that’s a lot to assume.
Will It Work?
Nobody knows yet. The R2 looks promising. The price point’s right. The design’s good. Rivian’s brand still has positive buzz despite the layoffs.
But they are not the only ones playing in this space. Tesla is developing a cheaper model. Legacy auto makers have EVs at similar price points. Low-cost electric vehicles are coming off Chinese production lines.
The EV market’s getting crowded. And Rivian is pinning all its hopes on one vehicle to break through.
What’s Next
More layoffs might be coming. Companies don’t usually end with the third round unless they’ve solved what’s ailing them. And Rivian’s challenges do not go away until the R2 is sold at a profit.
They still have the R3 and R3X in the works, which are smaller, cheaper vehicles down the line, after the R2. But those are even further out.
Just survive until mid-2026 for now. Keep the lights on. Keep building vehicles. Get the R2 to market.
The employees left after these cuts are working harder to cover the gaps. That’s not sustainable long-term. Something’s got to give.
The Bottom Line
Rivian’s in a tough spot. They make good vehicles but they’re not profitable. The R2 is supposed to change that. But launching a new vehicle while cutting staff is tricky.
They’re not going out of business tomorrow. They’ve got cash from Volkswagen. They’ve got reservations for the R2. They’ve got a factory that works.
But they’re also laying people off every few months. That’s not a sign of a healthy company.
The next year will make or break Rivian. If the R2 launches on time and sells well, these layoffs will look like smart cost-cutting. If it doesn’t, they’ll look like desperation moves that didn’t work.
Either way, the workers who got cut are dealing with the consequences right now. And the ones still there are wondering if they’re next.
That’s the reality of working for an EV startup in 2025. Even the promising ones are struggling to stay alive.