Small electric-vehicle maker Rivian plans to lay off about 600 workers, according to the Wall Street Journal.
Six-hundred worker is about four percent of Rivian’s workforce.
The move follows regulatory changes that may give consumers fewer reasons to buy an EV. Losing the $7,500 federal tax credit will likely reduce sales.
Rivian is also impacted by policies that have tanked the sales of compliance credits. That could cause Rivian have $100 million in revenue held up.
The electric-truck/SUV maker grew sales by 32 percent to 13,201 in the third quarter of this year. The company has shifted its sales forecast down to 41,500 units from 46,000.
Rivian had another round of layoffs last month, letting 1.5 percent of its workforce go as it cuts costs ahead of the launch of the lower-price R2 SUV. The R2 will retail for about $45K, and Rivian says it has enough money to launch it, despite losing $1.1 billion in Q2.
The company expects the R2 to have higher demand than the company’s R1 truck and SUV, because those vehicles are both over $70K to start.
[Image: Rivian]
