Rivian is an EV startup founded in 2009. After years of engineering, it introduced the first electric pickup truck with its 2021 R1T. It also offers an R1S SUV version, an electric delivery van used by Amazon, and is hoping to launch a midsize “R2” SUV in 2026. But the automaker is facing some kind of setback that made it lay off approximately 4.5% of its workforce.

Rivian CEO announces layoffs

Founding CEO RJ Scaringe recently emailed the entire company to announce a round of layoffs. Specifically, he’s reducing the marketing, vehicle operations and sales/delivery, and mobile operations teams. The Wall Street Journal wrote that a source close to the layoffs says they will affect more than 600 workers.

“These are not changes that were made lightly. 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.” — RJ Scaringe

Note that Rivian is not laying off any of the workers at its factory in Normal, Illinois. It is not laying off any of its engineers working on the R3, software, or other products. It has only launched one other public vehicle (and one fleet vehicle). It appears to be streamlining its process as it launches a second vehicle. It may also be delaying the launch of its R2 and trying to extend its runway. The automaker is also in the middle of building another factory in Georgia and does not appear to be slowing down that project.

So what’s going on here? It’s difficult to tell. Rivian recently entered a $5.9 billion joint venture with Volkswagen to provide EV software to VW. It also posted $1.1 billion in losses during the second quarter of 2025, likely because of lagging demand for its EVs. So perhaps Scaringe is realizing he has a potentially profitable software company that will continue to sell some high-end EVs. But the actual vehicles are taking the back burner.