Rivian lays off 140 employees to improve operational efficiency for R2

[Katsudon]

https://techcrunch.com/2025/06/26/rivian-cuts-dozens-on-manufacturing-team-ahead-of-r2-launch/

Rivian has laid off around 140 employees, or roughly 1% of its workforce, as it prepares for the launch of its more affordable R2 SUV in 2026, TechCrunch has learned.

The cuts were mostly made to Rivian’s manufacturing team and have been ongoing since Wednesday, according to multiple former employees who were granted anonymity to speak about the layoffs. Some employees were told that the company was eliminating roles that created “process inefficiencies.”

Rivian confirmed the cuts in an email to TechCrunch. “We have made the difficult decision to reduce a small number of our salaried manufacturing employees as part of an ongoing effort to improve operational efficiency for R2,” a spokesperson wrote. The company said affected employees are being encouraged to apply to other open positions inside the company.

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[shamoo]

Very sad for those impacted by the layoffs, but layoffs are common in the corporate world. 140 is a very small part of their headcount.

 

[UnsungZero_OldTimeAdMan]

"Efficiency" is the canned explanation for every single lay off ever, for any business, since making fewer people to do more work is "more efficient". So I take that with some skepticism. Then again, it may very well be that these positions added too many layers.

 

[drichan]

140 people is 35million savings. People are one of the most expensive parts of business operation. It’s common at the macro level. Sad and difficult at the micro level. Bottom line no one is guaranteed a job, plan accordingly.

 

[waitingonanr1s]

That's probably not going to help QA.

 

[iamnid]

That's probably not going to help QA.

We don't know what positions were eliminated.

 

[DuoRivian]

Good news for the bottom line and supports the survival of the company for the other 99%.

 

[UnsungZero_OldTimeAdMan]

That's probably not going to help QA.

Unless these are the people who are no longer needed because quality improved up stream.

 

[DaveA]

That's probably not going to help QA.

It will if those are the people that installed my doors…

 

[ReyvaRivian]

140 people is 35million savings. People are one of the most expensive parts of business operation. It’s common at the macro level. Sad and difficult at the micro level. Bottom line no one is guaranteed a job, plan accordingly.

Is the $35 mill savings reported somewhere? The layoffs were for Salaried Manufacturing employees per article.

That’s average $240k/year salary per employee…by that math

 

[RedRaiderRivian]

Is the $35 mill savings reported somewhere? The layoffs were for Salaried Manufacturing employees per article.

That’s average $240k/year salary per employee…by that math

Salary is typically only about 1/3 of employee cost. Insurance and other benefits are more than salary.

 

[Hereforthesnacks]

Salary is typically only about 1/3 of employee cost. Insurance and other benefits are more than salary.

Absolutely not. The total loaded cost of an employee- which of course will vary widely - is closer to 140% of comp.

 

[drichan]

Is the $35 mill savings reported somewhere? The layoffs were for Salaried Manufacturing employees per article.

That’s average $240k/year salary per employee…by that math

$250k per salaried employee is rule of thumb for most cost/savings calculations, and budgets. For salaried manufacturing job in Normal,IL this could be lower but most spreadsheets won’t care. A department will be asked to cut a certain percentage and use a number like this provided by finance to pick the HC impacted to meet the savings target.

 

[Rivdog]

Salary is typically only about 1/3 of employee cost. Insurance and other benefits are more than salary.

Where are you getting those numbers? All the extra costs, not just benefits but also FICA, are like 30% of cost - even if there is a deferred compensation plan AND an optional defined benefits plan (aka pension). Few companies even have pensions any more so it’s probably closer to 20% for most companies.

I’d be happy to do a consult to improve your efficiencies if an employee’s salary is only 1/3 of their total cost!

 

[Rade]

We have made the difficult decision to reduce a small number of our salaried manufacturing employees as part of an ongoing effort to improve operational efficiency for R2,”

It sounds like a consolidation of supervisory / lower management positions.

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