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Fisker Cuts Workforce Again to ‘Preserve Cash’

ByHuey Yee Ong

May 3, 2024

Fisker Cuts Workforce Again to ‘Preserve Cash’

Fisker Inc., an electric vehicle startup, has initiated another round of layoffs in an effort to conserve cash amidst financial strains. This decision comes just one week after the company informed investors of the need for workforce reductions to prevent bankruptcy.

According to an internal email from Founder and CEO Henrik Fisker, the company is exploring all viable options to sustain its operations, including the potential sale of the business or securing additional capital.

Henrik Fisker conveyed the distressing news of the layoffs in an email to employees, expressing personal sorrow over the decision. He emphasized the company’s ongoing negotiations under non-disclosure agreements with various car companies, initially reported by Business Insider, and the continuous search for potential buyers and investment to keep the company viable. As part of its cash preservation strategy, the CEO underscored the necessity of the workforce reductions.

The specifics of how many employees will be affected by this new round of layoffs were not disclosed, and the company’s spokesperson has yet to respond to inquiries regarding the matter. As of April 19, Fisker Inc. employed 1,135 people, having already reduced its workforce by 15% in February.

Moreover, Fisker Inc. announced last week the appointment of a chief restructuring officer responsible for overseeing the company’s budget and the decision-making process regarding any potential sale. The company’s financial status appears precarious, with only $54 million in cash and equivalents reported as of April 16.

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Featured Image courtesy of Mario Tama/Getty Images

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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