Electric vehicle startup Fisker has recently laid off hundreds of employees as it grapples with financial challenges and seeks potential funding, a buyout, or prepares for bankruptcy.
TechCrunch reports that in a desperate attempt to stay afloat, struggling EV startup Fisker has resorted to mass layoffs, cutting hundreds of jobs in a bid to survive its current financial crisis. The company, known for its sole product, the Ocean SUV, has been searching for funding, a potential buyout, or preparing for the possibility of bankruptcy.
Suspicions of impending layoffs arose when Fisker instructed all employees to work from home on Wednesday, a move that deviated from the company’s usual practices. The layoffs were officially announced during an all-hands meeting held the same morning. According to employees who attended the meeting, founder and CEO Henrik Fisker revealed that the large investor to whom the company owes money, along with the chief restructuring officer working on the investor’s behalf, pushed for more job cuts. Although Fisker has not publicly disclosed the identity of the investor, Henrik Fisker mentioned Heights Capital Management, an affiliate of Susquehanna International Group, during the meeting.
Vice President Joe Biden speaks about the announcement that Fisker Automotive will produce plug-in hybrid electric vehicles at the former General Motors Boxwood Plant, Tuesday, Oct. 27, 2009, in Wilmington, Del. (AP Photo/Rob Carr)
Estimates from current and laid-off employees suggest that only about 150 people remain at the company following the recent layoffs. This is not the first time Fisker has undergone significant workforce reductions. In February, the company announced a 15 percent cut in its workforce. As of April 19, Fisker employed 1,135 people, according to a regulatory filing. However, the company underwent additional rounds of layoffs in late April and late May, further reducing its workforce before Wednesday’s cuts.
Despite the widespread layoffs, Henrik Fisker maintained a somber yet determined tone during the call, as reported by sources. He acknowledged that the company had built “something great” and expressed the intention to continue selling the Ocean SUV to interested buyers. Fisker also suggested that laid-off workers might be re-hired once the company regains its footing.
Many employees discovered their termination after losing access to Microsoft services such as Teams and Outlook. Later, some received an email officially announcing their layoff, which included a one-week severance package. Laid-off employees shared similar accounts on LinkedIn.
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
