Rivian (NASDAQ:RIVN) is cutting jobs by 4%, which is expected to affect more than 600 employees of the electric vehicle company, according to a report by The Wall Street Journal on Thursday, citing sources.
The company, a month ago, cut 1.5% of its workforce to reduce costs ahead of the launch of a more affordable sport-utility vehicle next year.
EV makers, including Rivian, are being hard hit due to the current administration’s pullback on policies that supported the adoption of electric vehicles and the termination of a $7,500 federal tax credit for buying EVs.
The policy changes have hurt the sales of compliance credits, which drove profitability for Rivian and others. The company estimates $100M in revenue being held up due to the changes.