Rivian sends harsh message to workers with latest decision

Group 1: Job Cuts and Layoffs - Rivian is planning to lay off more than 600 workers, which represents about 4% of its workforce, due to a decline in electric vehicle demand following the expiration of the $7,500 federal tax credit [4] - This marks the second round of layoffs for Rivian in two months, with a previous layoff affecting 1.5% of its workforce announced in September [5] - Major auto manufacturers, including Ford, GM, and Stellantis, have also announced significant job cuts, with Ford cutting 4,000 jobs in Europe and GM cutting 2,000 jobs in the U.S. [7] Group 2: Industry Context and Performance - The auto industry has not experienced the same level of workforce contraction in 2025 as seen in 2024, where Stellantis initially planned to cut 1,100 jobs but later reduced that number to about 125 [2] - Rivian reported a third-quarter sales growth of 32%, but it has issued a narrower guidance for the full year, anticipating a drop in demand [5] - Rivian incurred a loss of $1.1 billion in the second quarter, highlighting ongoing financial challenges [6] Group 3: Regulatory and Market Challenges - Rivian expressed concerns that the Trump administration's reconsideration of emission compliance credits could jeopardize its operations, with the U.S. government currently holding up $100 million of revenue from these credits [8]