Facing Financial Headwinds: Fisker Implements Further Layoffs
A Difficult Chapter for the EV Startup
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Fisker, the electric vehicle (EV) manufacturer known for its stylish Ocean SUV, has recently faced a series of setbacks, culminating in another round of layoffs. Employees were informed of the job cuts during an all-hands meeting on Wednesday, following a company-wide directive to work from home earlier that day. This move signaled potential trouble brewing within the company, as it deviated from Fisker’s usual operational practices.
Investor Pressure and Restructuring Efforts
According to sources present at the meeting, CEO Henrik Fisker revealed that a major investor holding significant convertible debt demanded further staff reductions. The identity of this investor remains undisclosed, although Fisker mentioned Heights Capital Management during the meeting. Heights Capital Management is an affiliate of Susquehanna International Group, a prominent financial services firm.
This latest round of layoffs follows previous cuts announced in February and April, leaving only an estimated 150 employees remaining at the company. In April, restructuring officer John DiDonato informed California’s Employment Development Division that Fisker planned to lay off over 300 employees if it couldn’t manage its operating cash flow.
A Determined Outlook Despite Challenges
Despite the grim circumstances, Henrik Fisker reportedly maintained a resolute tone during the meeting, emphasizing the company’s achievements and commitment to selling the Ocean SUV to eager customers. He also suggested that laid-off employees could be rehired once the company stabilizes its financial position.
These recent layoffs underscore the challenges facing Fisker as it navigates a turbulent market for electric vehicles. The company’s future hinges on securing additional funding, exploring potential buyouts, or finding a way to restructure its operations and regain financial stability.
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