Rivian sends harsh message to workers with latest decision

On Oct. 23, reports surfaced that electric vehicle maker Rivian is cutting hundreds of jobs amid a slowdown in demand, but such a large headcount contraction has been rare in 2025 compared to last year.

Aside from a few major announcements, the auto industry hasn't faced anything like the bloodbath that occurred in the second half of 2024.

All of the Detroit Big 3 — Ford, General Motors and Stellantis — announced plans to slash thousands from their workforces late last year.

Major auto layoffs in 2024:

• Ford: 4,000 job cuts in Europe announced in November
• GM: 2,000 job cuts in the U.S. announced, 1,000 white-collar jobs cut
• Stellantis: 4,000 factory job cuts in the U.S. announced, 400 white-collar jobs cut
• Tesla: 10% global workforce reduction plan announced in April

While there have been thousands of layoffs announced so far this year, the numbers don't compare to the industry's workforce contraction from 2024.

Stellantis had shared plans to cut 1,100 jobs at its Toledo Jeep plant. The layoffs were supposed to start in January, but the company postponed those plans and ultimately revised the number of targeted jobs down to about 125 employees.

Stellantis had temporary layoffs affecting 900 workers, but that situation was rectified following pressure from the United Auto Workers Union.

GM said it would lay off 280 employees at its Factor Zero EV plant through the end of the year, due to slower EV growth.

Rivian, which only makes EVs, is apparently in the same boat.

Rivian to lay off more than 600 workers due to falling demand

Rivian is planning to lay off more than 600 workers over the coming weeks, as the company responds to a pullback in electric vehicle demand now that the $7,500 federal tax credit has expired.

Rivian is cutting about 4% of its head count. At the end of last year, the company had about 15,000 employees.

Related: Rivian reveals concerning shift in consumer behavior

This is the second time the company is doing layoffs in as many months. In September, Rivian announced a smaller round of layoffs, affecting 1.5% of its workforce.

At the time, the company said the move was designed to reduce costs ahead of the launch of its more affordable R2 SUV in 2026.

Rivian reported third-quarter sales growth of 32%, but the company also issued a narrower guidance for the full year, expecting demand to drop.

The company, which reports its full earnings next month, said it lost $1.1 billion in the second quarter alone.

Rivian recently said the Trump administration's reconsideration of emission compliance credits could derail its entire operation. Rivian also indicated that the U.S. government is holding up $100 million of revenue from the credits.

The administration has removed penalties for companies that emit too much carbon, so companies such as GM and Ford no longer need to buy compliance credits from companies like Tesla and Rivian.

Rivian reveals concerning shift in consumer behavior

Automakers had an electric third quarter selling EVs, with three OEMS reporting records.

EV makers with record-setting Q3:

• Ford: 85,789 hybrid, PHEV, and BEV sales, +20%
• General Motors: 66,501 EVs in Q3, YTD 144,668, +105%
• Tesla: 497,099 deliveries, +7.3%

Rivian wasn't one of those automakers. It produced 10,720 vehicles and delivered 13,201.

While those figures aligned with its internal forecast, Rivian revealed that it now expects to deliver between 41,500 and 43,500 vehicles for the year, narrowing from its previous guidance of between 40,000 and 46,000. 

Analysts at Goldman Sachs recently raised their Rivian price target to $15 from $12 per share with a neutral rating.

In August, Canaccord dropped its price target to $23 from $21 per share, while maintaining a buy rating.

Rivian shares were up 0.5% to $12.98 at last check Oct. 23.

Related: EV car makers get a positive update from beleaguered supplier