An electric vehicle (EV) startup, has reduced its workforce again which underscores the challenges faced by businesses in the developing EV sector.
According to a Business Insider story, Fisker started a second wave of layoffs, escalating its employee reduction efforts. The number of workers impacted by the most recent wave of layoffs is still unknown.
Henrik and Geeta Fisker launched Fisker in 2016, claiming to be driven by a vision of a clean future for all, and on a mission to become an e-mobility service provider using sustainable automobiles.
American multinational corporation and technology company Apple, has recently announced plans to cut more than 600 jobs after it abandoned its electric vehicle (EV) project.
Experts said that Fisker might be having financial issues and may have taken this action to ensure Fisker’s survival in the very competitive electric vehicle market.
Some sources suggest that Fisker employees from departments such as sales, IT, and customer relations may have been impacted by the recent layoffs.
The company had earlier said that it would cut employees by 15% in February. This most recent revelation sheds more light on the company’s financial status.
Newsng gathered that over the past few months, Fisker had issued numerous warnings that the company would go out of business within the year.
By the Worker Adjustment and Retraining Notification Act, the company notified employees on April 29 that, if it couldn’t find a buyer or further money, they might be let go in two months.
The EV manufacturer recently closed its Manhattan Beach headquarters in an attempt to avoid bankruptcy while announcing plans of acquisitions or other strategic alternatives.
In a similar story, we earlier reported that shortly after lowering pricing in the US, Tesla announced steep price reductions in China and Germany as it deals with diminishing sales and escalating competition in key countries.
