Rivian Automotive is set to lay off more than 600 people, or around 4% of its workforce, as the electric-vehicle maker looks to reduce costs, The Wall Street Journal reported Thursday, citing people familiar with the matter.

The company had carried out a smaller round of layoffs, affecting 1.5% of staff, a month ago, the report said.

Rivian, which plans to launch its lower-cost R2 sport-utility vehicle next year, did not immediately respond to a Reuters request for comment.

The company has struggled to achieve consistent profitability amid high production costs, a slowing EV market and intense competition from Tesla, Ford, and a growing slate of Chinese rivals.

It has focused on improving manufacturing efficiency at its Normal, Illinois plant, while preparing for its next-generation R2 models, which are expected to broaden its reach beyond the luxury segment.