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.
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.
