Rivian Automotive is cutting roughly 4.5% of its workforce as the electric-vehicle maker restructures operations ahead of its midsize R2 SUV launch, CEO RJ Scaringe told employees Thursday.
“With the launch of R2 in front of us and the need to profitably scale our business, we have made the very difficult decision to make a number of structural adjustments to our teams,” Scaringe wrote in a memo to staff.
The California-based EV maker is consolidating customer-facing operations to streamline the buying experience. Vehicle operations teams will be integrated into the service organization to reduce customer handoffs, while delivery and mobile operations will move under the sales organization to create a single point of contact through the entire purchase and delivery process.
Rivian is also forming a unified marketing organization for the first time. The company previously split marketing functions across multiple departments. Scaringe will serve as interim chief marketing officer while the company recruits for the role, overseeing the Marketing Experiences and Creative Studio teams.
“These are not changes that were made lightly,” Scaringe said. “With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions.”
The layoffs could affect Rivian’s Austin operations, where the company maintains a service center and flagship showroom. The company opened a 10,000-square-foot retail space on South Congress Avenue in June 2024, featuring a rooftop patio and direct access to the Lady Bird Lake Trial. The Austin locations house sales, delivery, mobile operations and service teams — functions targeted in the restructuring.
Job postings show Rivian currently employs field sales guides, delivery specialists, service technicians and vehicle detailers in Austin. The memo indicates delivery and mobile operations roles are being consolidated under the sales organization, while vehicle operations positions are moving to the service division.
The restructuring comes as Rivian works to achieve profitability amid high production costs and intense competition in the slowing EV market. The company builds vehicles in Normal, Illinois, and maintains operations across multiple U.S. cities.
Scaringe expressed confidence in the upcoming R2, the company’s more affordable SUV starting at $45,000. “These changes are being made to ensure we can deliver on our potential by scaling efficiently towards building a healthy and profitable business,” he wrote.