Rivian Cuts Hundreds of Jobs to Slash Losses Immediately Following Successful R2 SUV Rollout

Key Stats for Rivian Stock

• Price change for Rivian stock: -5%
• $RIVN Share Price as of Jun. 16: $14
• 52-Week High: $23
• $RIVN Stock Price Target: $18

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What Happened?

Rivian (RIVN) stock is under pressure after the company announced it is laying off hundreds of workers — less than 2% of its workforce. The cuts primarily affect service and customer support teams.

The timing is notable, as the layoffs come just one week after Rivian officially launched deliveries of its R2 SUV, the vehicle the company is counting on to become a mainstream brand.

Management has described the R2 as a game changer, with a bill of materials roughly half that of the R1 and non-material production costs expected to fall by more than 50%.

But the underlying numbers show why cost cuts are urgent.

• Rivian lost $3.6 billion in 2025 while delivering just 42,247 vehicles.
• In Q1 of this year, the automotive segment was still losing about $6,000 per vehicle delivered.
• This is also not the first round of job cuts. Rivian laid off more than 600 workers in October — roughly 4.5% of its workforce at the time — targeting marketing, vehicle operations, and sales teams.
• These latest cuts continue that effort to run leaner as the R2 ramp begins.

The broader environment isn’t helping either. The Trump administration eliminated the $7,500 federal EV tax credit, making it harder for companies like Rivian to attract new buyers at a time when they need volume most.

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What the Market Is Telling Us About Rivian Stock

Rivian stock reflects a company caught between two realities.

The R2 launch has been met with strong early enthusiasm — Founder and CEO RJ Scaringe called it his daily driver and said the reception from journalists has been overwhelmingly positive.

The Georgia plant expansion to a capacity of 300,000 units has also been approved, with $4.5 billion in DOE loan financing secured.

But Rivian stock will remain under pressure until the R2 ramp translates into positive automotive gross profit, which management is targeting by Q4 of this year.

Until then, investors are watching every dollar spent closely.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!