Shortly after commencing deliveries of its new electric vehicle models, Rivian Automotive, Inc. (RIVN.US) has laid off hundreds of employees as part of a cost-reduction initiative. A company spokesperson confirmed the layoffs affect less than 2% of its total workforce, with the reductions primarily focused on the service and customer operations departments. At the end of last year, Rivian employed over 15,200 people.

In a statement, the company explained, "We recently adjusted the structure of several internal teams to achieve profitable scaling of our business." This workforce reduction comes approximately one week after Rivian began delivering its R2 series plug-in SUV to customers.

The move occurs against a backdrop of softening demand for electric vehicles in the U.S. market, where consumers are also showing concern over high vehicle prices. Rivian is placing significant hope in its R2 model, aiming to use this more affordable vehicle to transform from a niche luxury EV manufacturer into a mainstream automotive brand.

The initial deliveries are of the high-performance R2 variant, which has a starting price of $57,990. The premium version of the R2 is scheduled to begin deliveries in late 2026, with multiple standard versions expected to follow in 2027.

Car and Driver magazine praised the R2 in a review, suggesting the electric SUV has the potential to challenge the dominance of Tesla's Model Y in the compact electric SUV segment. The electric vehicle news site InsideEVs offered even higher praise, with contributor Mack Hogan stating, "The R2, with its unparalleled performance, cutting-edge software, and robust off-road capability, is the versatile vehicle I've been dreaming of."

Over the past year, Rivian has conducted several rounds of layoffs as part of its effort to control costs and work towards sustained profitability. Last October, the company cut approximately 600 jobs in preparation for the R2 launch and organizational restructuring. Smaller rounds of layoffs also occurred in September and June of the previous year.

Reports indicate Rivian is one of the most capital-intensive among U.S. electric vehicle startups. The company's CEO, RJ Scaringe, disclosed in February that Rivian has invested nearly $25 billion over the past eight years. Despite this massive investment, the automaker has never achieved an annual profit. Data shows the company lost $3.6 billion last year while delivering only 42,247 vehicles.

Shares of Rivian Automotive, Inc. (RIVN.US) closed down 4.5% at $15.93 on Tuesday. The stock has declined 19% year-to-date, significantly underperforming the broader market.