Rivian Is Cutting Jobs Right After Launching the R2. Is the Profitability Story Getting Stronger or Weaker?

Rivian’s launch of the R2 SUV this month is followed by a measured round of job cuts aimed at profitability. The layoffs totaled less than 2% of the workforce, roughly 300 roles, and they affected sales and marketing rather than factory staff. The company said it restructured several teams as it scales production and software initiatives for the R2, while investors reacted by pushing the stock about 4.5% lower, leaving Rivian with a market capitalization near $20 billion. Headcount had risen to roughly 15,200 at the end of last year, reflecting hires tied to the R2 ramp and the self-driving effort.

Financials show deeper issues: Q1 gross profit of $119 million, largely from software and services tied to a VW JV; excluding that, automotive gross profit per vehicle was about -$6,000 before overhead. Regulatory credits shrank by $100 million; Rivian targets positive automotive gross profit by end of 2026 as R2 volumes grow. However, the unit economics reflect higher costs to launch a new vehicle, with substantial spending on autonomous driving and other programs. The company expects the R2 to help close the profitability gap as production scales and software integrations mature.