Elective vehicle-maker Rivian is laying off hundreds of workers in its service and customer organization.

A company spokesperson told FOX Business that the job cuts represent less than 2% of Rivian's workforce, which totaled about 15,200 employees at the end of 2025. Workers affected by the layoffs may apply for other open roles at the company.

"We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the spokesperson said.

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The job cuts took effect on Tuesday and affected Rivian's service and customer division, which is responsible for sales and marketing duties, as the company looks to restructure its teams to grow efficiently while rolling out a new model.

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The Wall Street Journal first reported the layoffs.

Rivian recently conducted multiple rounds of layoffs in the last year while it prepared for the launch of the R2 SUV , which factors heavily into the EV-maker's roadmap for future products.

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Ticker Security Last Change Change % RIVN RIVIAN AUTOMOTIVE INC. 15.93 -0.75 -4.50%

It cut over 600 jobs, or 4.5% of its workforce, in October amid softer demand for its vehicles following the expiration of EV tax credits in October.

The R2 officially debuted last week with a variant that had a larger number of optional add-ons for a starting price around $58,000 – while the automaker is planning to release more affordable versions in the future.

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The company is hoping that the lower-cost model will broaden demand and strengthen its sales outlook as it strives for profitability.

Rivian has said that it no longer expects to meet its 2027 adjusted core profit target as it ramps up spending on research and development to accelerate its autonomous driving roadmap.

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Reuters contributed to this report.