Rivian Announces Major Layoffs Following R2 Electric Vehicle Launch
June 16, 2026
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Key Takeaways
Rivian has announced layoffs affecting approximately 300 employees, less than 2% of its total workforce, as part of its efforts to "profitably scale" its electric vehicle (EV) business amidst the launch of the R2 model in Canada.
The R2, a competitor to the Tesla Model Y, is expected to play a crucial role in Rivian's transition to a mainstream automaker, with 20,000 units planned for delivery this year, aiming to achieve profitability after losses of $3.6 billion in 2025 and $4.7 billion in 2024.
Canadian customers can expect the R2 to be available in the market, with pricing and incentives such as the iZEV program and provincial rebates in British Columbia and Quebec, making the electric vehicle a more affordable option for Canadian buyers, with increased production capacity planned for 2028.
Rivian Announces Layoffs Amidst R2 Launch in Canada
Rivian, the electric vehicle (EV) manufacturer, has announced layoffs affecting hundreds of workers, just after launching the highly anticipated R2 model. The layoffs, which account for less than 2% of Rivian's total workforce, will impact approximately 300 employees, primarily in the service and customer segments, including sales and marketing roles. This move is part of the company's efforts to "profitably scale" its business, according to a spokesperson.
Impact on Canadian Market
The R2, which is expected to be a strong competitor to the Tesla Model Y, is crucial for Rivian's transition from a boutique adventure brand to a more mainstream automaker. With a planned delivery of 20,000 R2s this year, Rivian aims to achieve profitability, having lost $3.6 billion in 2025 and $4.7 billion in 2024. Canadian customers can expect to see the R2 available in the market, with pricing and incentives, such as the iZEV program, applying to eligible purchases. Provincial rebates, like those offered in British Columbia and Quebec, may also be available, making the R2 a more affordable option for Canadian buyers.
Production and Availability in Canada
Rivian plans to transition production of the R2 to a new plant in Georgia by 2028, which will have the capacity to produce up to 300,000 vehicles per year. This increased production will likely lead to wider availability of the R2 in the Canadian market, with potential kilometre ranges and colour options tailored to Canadian preferences. As the EV market continues to grow in Canada, Rivian's commitment to delivering high-quality, environmentally friendly vehicles will be an important factor in the centre of the country's automotive industry.
