Electric vehicle maker Rivian, which plans a corporate hub and a $5 billion EV factory in Georgia, reportedly plans to lay off more than 600 workers as it looks to trim costs.

The Wall Street Journal reported Rivian plans to cut about 4% of its total workforce, which at the end of last year was nearly 15,000 people. The company is looking to reduce costs as it is preparing to start production of a lower priced crossover, known as the R2, and it faces stiff headwinds caused by economic uncertainty and reduced government support for the consumer transition to EVs.

The Journal report cited unnamed people with knowledge of the matter. It is unclear what if any impact the reported cuts will have on Rivian’s planned or existing Georgia operations.

A Rivian spokesperson did not immediately provide comment to The Atlanta Journal-Constitution.

In September, Rivian held a ceremonial groundbreaking to mark the start of vertical construction of its planned EV factory about an hour east of Atlanta. The factory and promised 7,500 jobs have been delayed for years as the company has weathered supply chain issues and steep financial losses, but the company has insisted it will build the plant and meet its jobs and investment promises.

“There’s been some moguls along the way. But we’re excited to be here and to see this day come,” Rivian CEO RJ Scaringe said during the Sept. 16 groundbreaking ceremony.

Rivian’s Georgia factory is a major bet on its future. Scaringe has repeatedly said Rivian’s path to profitability will be powered by ramping up vehicle production, especially models offered at midrange prices.

Rivian’s flagship vehicles, the luxury R1T truck and R1S SUV, generally did not qualify for the most recent $7,500 federal tax credits, which the Trump administration ended in September. But the R2, a lower cost model, would have had the consumer incentives not been eliminated.

The automaker expects to start R2 production at its sole factory in Illinois next year. The Georgia factory, in southern Morgan and Walton counties along I-20 near Social Circle, is expected to expand production of the R2 and be the site of future vehicle models, including the smaller R3.

In July, Rivian said it had signed a lease to establish an East Coast headquarters along the Atlanta Beltline. Rivian has said that office will eventually employ 500.

The EV startup is expected to announce third quarter results early next month. Cox Enterprises, which owns the AJC, also owns about a 3% stake in Rivian.

Though Rivian is not profitable, it has notched two significant financial agreements to help the company move forward with its Georgia factory.

Rivian inked a software partnership worth an estimated $5.8 billion with Volkswagen, providing a new funding stream for the startup. The U.S. Department of Energy’s Loan Programs Office also finalized a $6.6 billion construction loan to help finance Rivian’s Georgia plant in the waning days of the Biden administration.

Though criticized by some of Trump’s allies, Scaringe has said as long as Rivian meets its terms of the loan agreement, it’s a settled matter.

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