Electric‑vehicle maker Rivian announced a round of layoffs that cut hundreds of staff, mainly from its service and customer organization that handles sales and marketing. The move aims to trim costs as the company prepares to launch a new model and push toward profitability.

The cuts affect less than 2% of Rivian’s workforce, a spokesperson said, rounding out a total of about 15,200 employees at the end of last year. The company said the restructuring, effective Tuesday, will help it scale efficiently and align resources with the upcoming product rollout.

Investors will watch how the cost cuts translate into margins as Rivian rolls out its next vehicle. The company’s announcement signals a shift toward a leaner business model, a move that could affect its valuation and the broader electric‑vehicle supply chain.

The announcement comes after a period of sluggish sales and mounting inventory in the EV sector. By cutting headcount, Rivian may reduce operating expenses that have previously outpaced revenue growth, potentially improving its earnings outlook and restoring confidence among stakeholders wary of the company’s high burn rate firmly today.