Rivian stock fell after the EV maker confirmed layoffs affecting less than 2% of its workforce as it seeks to reduce losses.

Key Highlights

  • Rivian shares fell 5.19% to $15.82 in Tuesday trading.
  • Layoffs affect less than 2% of Rivian’s workforce across service and customer teams.
  • Rivian reported 15,232 employees across North America and Europe at the end of last year.
  • The EV maker lost $3.6 billion last year while delivering 42,247 vehicles.

Rivian Automotive, Inc. (NASDAQ:RIVN) shares fell Tuesday after the electric vehicle maker said it was laying off hundreds of workers as part of a restructuring effort aimed at improving profitability.

The stock dropped 5.19% to $15.82 in regular trading, after closing the previous session at $16.68. Shares opened at $16.54 and traded between $15.79 and $16.56, with volume near 12.17 million shares.

The company said the cuts affect less than 2% of its workforce and include some teams in service and customer operations. Rivian had 15,232 employees across North America and Europe at the end of last year.

The layoffs come as Rivian works to narrow losses while scaling production. The company said it recently restructured several teams as part of its effort to grow the business profitably.

Rivian has not yet reported an annual profit. The EV maker lost $3.6 billion last year while delivering 42,247 vehicles, according to company filings.

Its automotive segment also remained under pressure in the first quarter, with losses of about $6,000 per vehicle delivered. The latest workforce reduction follows a larger round of cuts in October, when Rivian laid off more than 600 workers, or roughly 4.5% of its workforce.

Those earlier reductions affected marketing, vehicle operations, sales and delivery, and mobile operations teams. The latest cuts come shortly after Rivian began deliveries of the R2 SUV, a key model intended to expand the company beyond higher-priced electric vehicles.

Rivian has said the R2 is central to its profitability plan. The vehicle is designed to move the company closer to a wider consumer market after earlier sales were concentrated in premium electric trucks and SUVs.

The stock decline also came despite a separate partnership announcement with ChargeScape. The agreement will allow Rivian drivers to enroll EV batteries in utility managed-charging programs across North America.

ChargeScape is backed by BMW, Ford, Honda and Nissan. The platform is designed to help utilities manage electricity demand while allowing EV owners to reduce charging costs.

Rivian’s shares remained under pressure as investors focused on cost reductions, delivery scale and the company’s path to lower vehicle-level losses.