Electric vehicle manufacturer Rivian announced Tuesday that it is laying off fewer than 2 percent of its workforce as part of a broader effort to scale its operations sustainably. With a workforce of approximately 15,200 employees as of December, the cuts are focused primarily on the company’s service and customer organization, which includes sales and marketing teams.

The restructuring coincides with Rivian’s recent launch of the R2 sport utility vehicle, a smaller and lower-cost model introduced in April. The company has begun deliveries of the R2 SUV and views the vehicle as a key component in expanding its customer base and advancing toward profitability.

Despite this move, Rivian has revised its financial outlook and no longer expects to meet its previously announced adjusted core profit target for 2027. The company plans to increase spending on research and development, particularly to accelerate progress on its autonomous driving technology.

A company spokesperson explained that the restructuring involved “a handful of teams” and emphasized that the steps taken are aimed at supporting the company’s goal of scaling profitably. The layoffs, while limited in scale, signal Rivian’s ongoing adjustments as it navigates growth challenges in the competitive electric vehicle market.