Rivian to Pay $250M, Cut 600–700 Jobs

Rivian agreed to pay $250 million to settle a 2022 securities class-action (Crews v. Rivian) alleging it misled investors around its 2021 IPO and R1 price hikes; the company denied wrongdoing and said the settlement requires approval from the U.S. District Court for the Central District of California. The payment would be funded by $67 million of directors’ and officers’ liability insurance and $183 million of cash, and Rivian reported about $4.8 billion in cash and equivalents as of June 30. The announcement coincides with plans to cut roughly 600–700 jobs (about 4–4.5% of the workforce) and a corporate reorganization that consolidates delivery, service and marketing, with CEO R.J. Scaringe acting as interim CMO. Rivian said resolving the litigation will allow it to focus on launching a lower‑priced, mass‑market R2 SUV in 2026 and ramping production at its Normal, Illinois plant and a planned Georgia factory. The automaker reported third‑quarter deliveries rose about 32% year over year to roughly 13,200 vehicles but narrowed full‑year 2025 guidance to about 41,500–43,500 vehicles amid weakened demand after the expiration of the $7,500 federal EV tax credit and tariffs that have pressured sales and margins.