Rivian’s Severance Package for Laid-Off Employees Revealed in Leaked Documents
Rivian, the electric vehicle manufacturer based in California, has recently disclosed details of its severance package for employees affected by the latest layoffs. An internal memo from CEO RJ Scaringe, dated October 23, announced cuts affecting around 600 workers, representing approximately 4.5% of the total workforce. This decision aligns with Rivian’s strategy to “profitably scale” the company and prepare for its upcoming R2 SUV launch next year.
Details of Rivian’s Severance Package
Documents obtained by El-Balad reveal that impacted employees will be placed on paid administrative leave for 60 days. This leave will continue until December 23, during which employees will receive full salaries and benefits.
Severance Pay Structure
- Total duration of paid leave: 8.5 weeks, which will count against the final severance package.
- Severance pay is based on the employee’s role, classified as “RIV Grade Level,” and their tenure.
Here are highlights of the severance structure:
| RIV Grade Level | Weeks of Pay |
|---|---|
| 1-4 | Up to 10 weeks (including administrative leave) |
| 8-9 | 7 weeks plus 4 weeks per year of service (up to 22 weeks) |
| 10-11 | Up to 28 weeks |
Affected employees are required to sign a release agreement by January 1, 2026, to qualify for severance pay. They are also encouraged to apply for available positions within Rivian, as they remain eligible for rehire.
Additional Employee Benefits
Eligible employees will still receive patent-filing award payouts until the separation date. However, any unvested restricted stock units will be forfeited after December 23. To assist during this transition, Rivian will offer career-transition and resume services starting Thursday.
According to Scaringe, Rivian is at a critical junction in its history. The company aims to manufacture millions of vehicles annually, indicating the necessity of launching the R2 SUV.
Ongoing Industry Challenges
The layoffs reflect broader issues within the electric vehicle market, including slowing consumer adoption and changes in federal regulations. Rivian’s actions follow similar decisions from other automakers, such as General Motors, which recently announced layoffs of about 1,750 employees amid a shifting EV marketplace.
This wave of layoffs highlights the pressing need for companies to adapt to a challenging environment. As Rivian navigates these changes, its focus remains on achieving growth and stability within the competitive EV sector.
