The atmosphere at the waterfront railway yard in Oakland on Wednesday morning radiated an unmistakable energy — a lively, almost celebratory mood that seemed to fuse curiosity with anticipation. Within this converted industrial venue, more than a hundred guests gathered to witness the unveiling of a project long cloaked in secrecy: a venture emerging from Rivian’s lesser-known spinoff, ALSO. For several years this subsidiary had operated quietly behind the scenes, refining a concept that was finally revealed to be a thoughtfully engineered $4,500 electric bicycle. Though the innovation bore little technological resemblance to Rivian’s fleet of cars and trucks, the initiative reflected a deeply personal connection for CEO RJ Scaringe. His presence at the event, accompanied by his children who joined in the festivities, underscored how intertwined his professional ambitions and personal values have become.
If there were any outward hints that Scaringe was privately grappling with the weight of an upcoming decision — one involving the termination of hundreds of Rivian employees slated for the following day — he gave no sign of it. His tone was composed, his enthusiasm sincere when I asked how he perceived the mood within Rivian as it prepared for its next major vehicle launch. “I’m super excited,” he replied with a bright, almost unguarded eagerness. This moment, he explained, represented more than a launch: for him, it was the culmination of years of perseverance, an apex in Rivian’s corporate narrative. “For us, it’s the most important point of the company — in the history of the company,” he emphasized.
The initiative at the center of his comments was the forthcoming R2, a vehicle expected to become Rivian’s most financially accessible model. As Scaringe put it, Rivian’s mission to expand its driver base depends on overcoming one of the EV market’s most enduring obstacles: affordability. Set at roughly $45,000, the R2 stands as Rivian’s direct response to that challenge, designed to entice a broader spectrum of consumers while preserving the adventurous yet refined spirit that defines the brand.
Rivian’s earlier model, the R1, established the company’s image in the marketplace. As a flagship, it embodied performance, craftsmanship, and an aspirational lifestyle associated with outdoor exploration and design precision. Yet Rivian’s longevity, Scaringe made clear, depends on reaching customers beyond the premium tier — those who desire sustainability and innovation at a more practical price point. Evoking a striking analogy, he drew parallels to Tesla’s trajectory. Just as Tesla’s Model 3 transformed that company’s reach by lowering price barriers following the limited-run Model S and Model X, Rivian’s R2 aims to be its democratizing breakthrough.
His comparison recalled a key moment from 2018, when Elon Musk famously described Tesla’s launch of the Model 3 as a “bet-the-company” undertaking — a bold venture that pushed Tesla to the brink of insolvency yet ultimately cemented its success. When I asked whether Rivian’s R2 represented a similar do-or-die inflection point, Scaringe resisted the drama of that label. He preferred instead to describe the R2 as a pivotal stage — the kind of step fundamental to the company’s growth into the global enterprise it aspires to become. “For us to become a company of the scale we aspire to be — producing many millions of cars a year — we can’t achieve that goal with a single $90,000 flagship,” he explained. “We need R2, we need R3. And if we fail to launch R2, we remain a niche player.”
The road to realizing that ambition has already demanded difficult trade-offs. Rivian has undertaken several waves of restructuring in recent years, each one designed to streamline operations as it pursued sustainable growth. In 2023 and beyond, the company reduced its salaried workforce by approximately 10%, the third such reduction in a short span. The following month, additional trimming affected about 1.5% of the staff, and early Thursday morning — just a day after the Oakland event — word began circulating internally of yet another round of layoffs.
According to reports first published by The Wall Street Journal, more than 600 employees, roughly 4.5% of Rivian’s total workforce, were to be let go. The news spread rapidly, generating anxiety among remaining staff. “Everyone I know was shocked,” one recently affected employee confided, describing how discussion and speculation about potential cuts had already unsettled colleagues the day before. “People were panicking, wondering which departments would be hit. Many teams already felt stretched thin.” Rivian’s spokesperson declined to elaborate or issue further comment.
By that afternoon, Business Insider received an internal memo sent by Scaringe to Rivian’s 15,000 employees. In it, the CEO characterized the decision as painful but necessary. He explained that as Rivian prepared for the monumental R2 launch, it needed to sharpen its operational efficiency and ensure the ability to scale profitably. The restructuring, he wrote, concentrated primarily on customer service and marketing divisions, areas being reorganized to align resources with the company’s strategic direction. Scaringe also revealed that he would temporarily assume the role of interim Chief Marketing Officer, underscoring his intent to remain deeply engaged in all aspects of the transition.
When I asked Scaringe whether the company’s forthcoming R3 crossover — a vehicle already building excitement among Rivian’s devoted fan base — hinged on the success or failure of R2, he rejected that framework altogether. His perspective on risk, he explained, was molded by years of building the company from nothing. “People often ask how I’d cope if we failed,” he said, pausing as though considering how to translate years of trial into a single thought. “But to me, the likelihood of failure is lower now than ever. The real risk lay in the beginning — when Rivian was just an idea. We had no capital, no team, no technology, no plant, no brand, nothing but belief.” His words served as both reflection and defiance, a reminder that every established company once emerged from a much more precarious place.
In tone and substance, Scaringe’s comments revealed a balancing act that defines leadership in periods of transformation. As Rivian navigates between visionary innovation and sober financial stewardship, the company’s identity — embodied as much in an e-bike debut as in a multimillion-dollar SUV launch — illustrates the tension between ambition and pragmatism. Whether R2 indeed marks the inflection point Scaringe envisions, it is certain that its outcome will shape not only Rivian’s future but also its place within the broader evolution of the electric vehicle industry.
Sourse: https://www.businessinsider.com/rivian-layoffs-r2-production-rj-scaringe-critical-moment-2025-10
