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Rivian Lays Off 140 Workers to Boost R2 SUV Production Efficiency
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Key Takeaways
RIVN cut 140 jobs, mainly in manufacturing, to streamline operations ahead of the R2 SUV rollout.
The Normal, IL plant will temporarily shut down to install R2 equipment with minimal R1 line disruption.
RIVN expects R2 to drive profitability through lower costs and shared infrastructure with existing models.
Rivian Automotive, Inc. (RIVN - Free Report) has laid off approximately 140 employees or about 1% of its workforce, as it gears up for the 2026 launch of its more affordable R2 SUV, per TechCrunch.
The majority of the job cuts affected the manufacturing division. According to former employees, some roles were cut due to process inefficiencies. Per a Rivian spokesperson, the layoffs involve a small number of salaried manufacturing staff and are part of efforts to enhance operational efficiency ahead of the R2 rollout. Affected employees are being encouraged to apply for other positions within the company.
The R2 will be the fourth vehicle produced at Rivian’s Normal, IL facility, following the R1S, R1T and its commercial van. To prepare for R2 production, the factory will temporarily shut down later this year. The necessary equipment has already arrived and will be installed with minimal impact on the R1S and R1T lines, which will share some infrastructure with the R2 line.
Per its SEC filing, as of early 2025, Rivian had more than 14,800 employees across North America and Europe. The company has implemented several rounds of layoffs in recent years, including a 10% reduction in early 2024 and another 1% cut in April.
Rivian aims to broaden its reach with the upcoming R2 and R3 models, targeting more budget-conscious consumers. The R2, a midsize SUV, is slated for launch in the first half of 2026 with a starting price around $45,000, significantly lower than the premium R1 lineup. Rivian views the R2 as a key growth driver, citing major cost efficiencies in both materials and manufacturing. The company anticipates the R2’s launch will accelerate its path to profitability and help reduce fixed costs per unit across all vehicles produced at its Normal, IL, plant due to higher production volumes.
The automaker’s cash balance declined to $4.7 billion at the end of the first quarter of 2025, down from $5.3 billion in 2024, as the company continues to burn cash while pursuing long-term growth. Adjusted EBITDA losses were $329 million in the last reported quarter, due to R2 development, tech investments and expanding operations.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2025 earnings implies year-over-year growth of 6.26%. EPS estimates for 2025 and 2026 have improved 54 cents and 53 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 7.97%, respectively. EPS estimates for 2025 and 2026 have improved 29 cents and 33 cents, respectively, in the past seven days.
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Rivian Lays Off 140 Workers to Boost R2 SUV Production Efficiency
Key Takeaways
Rivian Automotive, Inc. (RIVN - Free Report) has laid off approximately 140 employees or about 1% of its workforce, as it gears up for the 2026 launch of its more affordable R2 SUV, per TechCrunch.
The majority of the job cuts affected the manufacturing division. According to former employees, some roles were cut due to process inefficiencies. Per a Rivian spokesperson, the layoffs involve a small number of salaried manufacturing staff and are part of efforts to enhance operational efficiency ahead of the R2 rollout. Affected employees are being encouraged to apply for other positions within the company.
The R2 will be the fourth vehicle produced at Rivian’s Normal, IL facility, following the R1S, R1T and its commercial van. To prepare for R2 production, the factory will temporarily shut down later this year. The necessary equipment has already arrived and will be installed with minimal impact on the R1S and R1T lines, which will share some infrastructure with the R2 line.
Per its SEC filing, as of early 2025, Rivian had more than 14,800 employees across North America and Europe. The company has implemented several rounds of layoffs in recent years, including a 10% reduction in early 2024 and another 1% cut in April.
Rivian aims to broaden its reach with the upcoming R2 and R3 models, targeting more budget-conscious consumers. The R2, a midsize SUV, is slated for launch in the first half of 2026 with a starting price around $45,000, significantly lower than the premium R1 lineup. Rivian views the R2 as a key growth driver, citing major cost efficiencies in both materials and manufacturing. The company anticipates the R2’s launch will accelerate its path to profitability and help reduce fixed costs per unit across all vehicles produced at its Normal, IL, plant due to higher production volumes.
The automaker’s cash balance declined to $4.7 billion at the end of the first quarter of 2025, down from $5.3 billion in 2024, as the company continues to burn cash while pursuing long-term growth. Adjusted EBITDA losses were $329 million in the last reported quarter, due to R2 development, tech investments and expanding operations.
RIVN’s Zacks Rank & Key Picks
Rivian carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Strattec Security Corporation (STRT - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2025 earnings implies year-over-year growth of 6.26%. EPS estimates for 2025 and 2026 have improved 54 cents and 53 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 7.97%, respectively. EPS estimates for 2025 and 2026 have improved 29 cents and 33 cents, respectively, in the past seven days.