Rivian Cuts 600 Jobs in Third ’25 Layoff Round

Rivian is cutting more than 600 jobs—about 4% of its total staff—in its third round of layoffs this year, according to a report from TechCrunch. The move comes as the electric truck maker tries to save cash for the launch of its cheaper R2 model in 2026.

Key Facts

• The Cut: Roughly 600 employees (4% of the 15,000-person workforce).
• The Targets: Commercial teams including sales, marketing, and service. Factory workers in Normal, Illinois, appear safe for now.
• The Severance: Paid leave until December 23, plus lump-sum payouts based on rank.
• Source: TechCrunch, IndexBox

Sales and Service Hit Hardest

This cut hits the office staff, not the assembly line. Reports indicate the layoffs focus on the commercial side of the business—people in marketing, service, and sales. The company is trying to fix its balance sheet after posting a $1.1 billion loss in the second quarter.

CEO RJ Scaringe cited a “changing operating backdrop” as the main driver. In plain English, that means selling expensive electric trucks is getting harder. High interest rates and changes to federal tax credits have slowed demand, forcing the company to shrink its support teams.

The Severance Details

Documents leaked from inside the company give a clear picture of the exit package. Affected workers are placed on “paid administrative leave” for 60 days. They will stay on the payroll with full benefits until December 23, 2025.

After that date, the actual severance kicks in based on the employee’s grade:

• Entry to Mid-Level (Grades 1-4): 10 weeks of total pay.
• Directors (Grades 8-9): 7 weeks of base pay plus 4 weeks for every year they worked there.
• VPs (Grades 10-11): Up to 28 weeks of pay.

Workers also get to keep their health and fertility benefits through the end of the year.

All Eyes on the R2

This pain has a specific purpose: survival until 2026. Rivian is betting everything on the R2, a smaller, cheaper SUV priced around $45,000. The current R1T and R1S models cost over $70,000, which limits who can buy them. By cutting costs now, Rivian hopes to have enough cash to get the R2 into production without running out of money.