Facing market headwinds, Rivian (RIVN.US) plans to lay off 4.5% of its workforce, affecting over 600 employees.

According to a notice sent to employees, all-electric vehicle manufacturer Rivian (RIVN.US) will lay off approximately 4.5% of its workforce, at a time when the company is facing increasingly challenging market conditions. Rivian founder and CEO RJ Scaringe stated in the notice that the layoffs will primarily affect the marketing team, vehicle operations team, and sales/delivery and mobile operations team reorganization. Scaringe said, "We are making these adjustments not lightly. With changes in the operating landscape, we must rethink how we scale functions related to 'getting products to market'. This news is difficult to hear, and we are very grateful for the hard work and contributions of the team members who will be departing." As of the end of last year, Rivian had just under 15,000 employees. The notice did not specify the exact number of layoffs. Reports suggest that the layoffs will affect over 600 employees. A source familiar with the plan has confirmed this number. Against the backdrop of new regulations put in place by the Trump administration, Rivian and other electric vehicle manufacturers are facing a more challenging market environment than in recent years, including the cancellation of the $7,500 federal tax credit for electric vehicles. In addition to policy changes, Rivian is also facing challenges such as slower-than-expected growth in demand for electric vehicles, a prolonged period of no new products until next year, urgent need for funding, and continued losses. In the second quarter of this year, the company reported a loss of $1.1 billion. In the notice on Thursday, Scaringe stated that these adjustments will ensure the company "can efficiently scale, build a healthy and profitable business, and realize its full potential." Currently, Rivian is preparing to launch the new R2 series of vehicles, which are expected to go into production next year. In the third quarter of this year, Rivian's vehicle sales increased by 32% year-over-year to 13,201 units, as consumers rushed to purchase electric vehicles before the federal subsidy deadline at the end of September. However, the company has revised its delivery expectations for 2025 from a previous high of 46,000 units to between 41,500 and 43,500 units. In August of this year, Rivian also revealed that its adjusted core losses for the year will increase to between $2 billion and $2.25 billion, compared to the previous projection of $1.7 billion to $1.9 billion. As of Thursday's closing, Rivian's stock price closed at $13.09, up 1.32% for the day, narrowing its year-to-date decline to less than 2%.