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On October 23, Rivian announced the layoff of 4.5% of its workforce.
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The company placed the affected employees on paid administrative leave for 60 days.
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Laid-off workers will receive severance pay depending on their level and length of service.
Rivian, the California-based electric vehicle maker, is placing employees affected by the company’s latest layoffs on paid administrative leave for the next 60 days, according to documents obtained by Business Insider.
CEO R.J. Scoringe told employees in an internal memo sent Oct. 23 that the company is cutting about 4.5% of its workforce — more than 600 employees — citing “the need to profitably scale our business” and preparing for the launch of the Rivian R2 SUV next year.
The affected employees will remain on the company’s payroll until Dec. 23, receiving full pay and benefits for 60 days, according to the document, which outlines Key Dates and Resources.
Earnings earned during the period of administrative leave — about 8.5 weeks — will be deducted from the final severance pay, according to the filings.
Severance pay is determined by role – defined as “RIV level” – and length of service for Rivian employees, the documents say. Class level – from 1 to 11 according to documents.
For example, employees of “RIV Grades 1-4” can receive up to 10 weeks of salary. This includes 8.5 weeks of pay during administrative leave. A Rivian employee affected by the layoffs told Business Insider that grades 1-4 include entry-level and mid-level employees.
For “RIV grades 8-9,” employees will receive seven weeks of pay, plus four weeks of pay for each year of service, for a total of 22 weeks of pay, the documents said. A Rivian official said level 8 employees include roles such as chief engineer or director, while level 9 is senior directors.
Grades 10 to 11, which include vice president roles, can receive up to 28 weeks’ pay, according to the source.
Affected employees must sign a severance agreement between Dec. 23 and Jan. 1, 2026, to receive severance pay.
Marina Hoffmann, a spokeswoman for Rivian, told Business Insider in an email that the range levels are similar to those of many public companies and that the levels “correspond to the positions and responsibilities.”
“Aggrieved employees are eligible for rehire and are encouraged to apply for other positions for consideration at Rivian,” Hoffman wrote.
Eligible employees will continue to receive any payments for patent applications through the Dec. 23 separation date, according to a document titled “Employee Frequently Asked Questions.”