As Rivian gears up to launch its midsize R2 SUV in Normal, the EV manufacturer is downsizing its company with a new round of layoffs.
California-based Rivian, which builds all of its electric pickups, SUVs and commercial vehicles in downstate Illinois, gave notice Thursday to more than 600 employees, or roughly 4.5% of its workforce, the company said.
“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,” Rivian CEO and founder R.J. Scaringe said in a memo to employees. “These are not changes that were made lightly.”
Scaringe said the cuts will primarily streamline customer service and marketing departments. No manufacturing operations employees are affected by the layoffs, the company said.
The layoffs were first reported by The Wall Street Journal.
The move comes as Rivian is expanding its Normal plant to accommodate the new R2 line. It is also facing broader industry headwinds, including slower EV demand and the end last month of a $7,500 federal tax credit as part of Trump’s “one big beautiful bill,” which eliminated the Biden-era EV incentive.
Rivian began building its full-size electric R1T pickup truck, the R1S SUV and its commercial delivery vans in September 2021 in a former Mitsubishi auto plant on the outskirts of Normal. Last year, Rivian revealed that the midsize R2 also will be made in Illinois, putting plans to build a $5 billion Georgia plant on hold.
Backed by $827 million in state incentives, Rivian is expanding its 4.3 million-square-foot auto plant by an additional 1.1 million square feet and creating more than 550 assembly jobs over five years to build the midsize R2 SUV, which is expected to begin rolling off the production line during the first half of 2026.
Rivian is also building a $120 million, 1.2 million square foot supplier park near its Normal plant to facilitate increased production. The new facility is expected to add 100 jobs to the EV production ecosystem in the college town about 130 miles south of Chicago.
Last month, the state announced French company OPmobility as the first tenant at the Rivian supplier park, where it will assemble bumpers for the R2 SUV. OPmobility was incentivized to build its first Illinois facility through the state’s Reimagining Energy and Vehicles In Illinois (REV Illinois). The 2021 legislation offers up to a 75% credit on state income tax for EV manufacturers for meeting agreed-upon investment and job creation targets.
The Rivian plant had about 7,000 assembly workers in April 2024, when it streamlined operations and went from three to two shifts. Rivian had 14,861 employees across North America and Europe at the end of 2024, but declined Thursday to provide the current number of employees in Normal.
Expectations for the new R2 are high. The EV automaker is seeking to lure new buyers at price points well below its first-generation SUV and truck, which cost upward of $80,000. The R2 will be priced starting at $45,000.
Last year, Rivian produced 49,476 and delivered 51,579 EVs from its Normal plant, with lowered production guidance for 2025.
During the third quarter, the automaker built 10,720 vehicles at its Normal plant and delivered 13,201, in line with its projections. At the same time, Rivian “narrowed” its 2025 delivery range to 41,500 to 43,500 vehicles, lopping off the high end of projections for up to 46,000 vehicles this year.
The company, which lost nearly $1.7 billion through the first six months of 2025, is set to release its third quarter earnings Nov. 4.
In addition to the new R2, Rivian is helping to launch another new product — an e-bike set to hit the streets, sidewalks and trails next year. Also, a Rivian spinoff, is rolling out its $4,500 e-bike in the spring, featuring up to 100-mile range, pedal-assisted top speeds of 28 mph and programmable terrain modes.
rchannick@chicagotribune.com
