Fisker, a struggling electric vehicle (EV) startup, has recently laid off hundreds of employees in an effort to stay afloat while searching for funding, a buyout, or preparing for bankruptcy. The news of the layoffs came as a surprise to many workers who were instructed to work from home on Wednesday, which was out of character for the company. The layoffs were announced during a company-wide meeting held that morning.
During the meeting, Founder and CEO Henrik Fisker revealed that the company’s large investor, whom they owe money to, along with the chief restructuring officer working on behalf of the investor, wanted more people to be let go. Although the identity of this investor has not been disclosed, Henrik Fisker mentioned Heights Capital Management, an affiliate of financial services giant Susquehanna International Group, during the meeting.
As a result of these recent layoffs, it is estimated that only around 150 employees remain at the company. This is not the first time Fisker has undergone workforce reductions. In February, they announced cuts of 15%, and as of April 19, they employed 1,135 people. However, the exact number of employees after subsequent rounds of layoffs in late April and late May remains unknown.
Despite the somber atmosphere surrounding the layoffs, Henrik Fisker expressed determination and confidence in the company’s future during the meeting. He acknowledged that they had built something great and assured employees that the company would continue to sell its only EV, the Ocean SUV, to customers who still want to purchase them. Additionally, he mentioned that laid-off workers may have the opportunity to be re-hired once the company is back on track.
The process of announcing the layoffs to employees was not without its challenges. Many workers initially discovered they were laid off when they lost access to Microsoft services like Teams or Outlook. Later that day, some employees received an email officially confirming their termination with one week of severance pay. Several laid-off employees also shared similar details on LinkedIn.
These recent layoffs come after months of difficulties for Fisker and less than a year after the company began full-scale deliveries of the Ocean SUV. The company is facing financial struggles and is actively seeking solutions to ensure its survival in the EV market.
