Rivian plans to lay off more than 600 workers

Detroit – Rivian Cars It is reportedly planning to lay off more than 600 people as the all-electric car maker faces growing market challenges.

The Wall Street Journal, which first reported the plans, said the layoffs would affect roughly 4% of the company’s workers. Rivian had just under 15,000 employees at the end of last year.

A source familiar with the plans confirmed the layoffs to CNBC and said additional details are scheduled to be shared with employees on Thursday. The person spoke anonymously because the news has not yet been published.

Rivian and other electric vehicle makers increasingly face a more challenging market than in recent years amid changing regulations under the Trump administration, including the elimination of the $7,500 federal incentive to purchase an electric vehicle.

Aside from regulatory issues, Rivian is also facing slower-than-expected demand for electric vehicles and a shortage of new products until next year amid cash needs and profit losses. The company lost $1.1 billion during the second quarter.

Rivian vehicle sales rose 32% to 13,201 units year-over-year during the third quarter as buyers rushed to purchase an electric vehicle before federal incentives expire at the end of September, but the company’s 2025 delivery forecast shrank from as many as 46,000 units to between 41,500 and 43,500 vehicles.

In August, Rivian also cited a larger adjusted core loss this year, forecasting it to be between $2 billion and $2.25 billion, compared to $1.7 billion to $1.9 billion in the previous forecast.

Rivian shares were at their levels during Thursday afternoon trading. The stock is down about 3% this year.