Struggling EV startup Fisker has laid off hundreds of employees in an effort to stay afloat as it continues to seek funding, a buyout, or prepare for bankruptcy.
Employees suspected layoffs were imminent when the company unexpectedly instructed everyone to work from home on Wednesday, a directive that was unusual, according to multiple current and former employees. The layoffs were confirmed during an all-hands meeting held Wednesday morning.
Founder and CEO Henrik Fisker informed employees that the major investor to whom the company owes money, along with the chief restructuring officer representing the investor, wanted to cut more jobs.
While Fisker has not revealed the identity of the investor behind the convertible debt, Henrik Fisker did mention Heights Capital Management during the meeting. Heights Capital Management is associated with financial services giant Susquehanna International Group.
According to estimates from one current and one recently laid-off employee, about 150 people remain at the company.
Fisker has already undergone several rounds of layoffs. In February, it announced a 15% reduction in staff. Fisker employed 1,135 people as of April 19, according to a regulatory filing. This number decreased after additional layoffs in late April and late May, followed by the most recent cuts on Wednesday.
Fisker did not immediately respond to requests for comment. Chief restructuring officer John DiDonato also did not respond immediately. DiDonato had previously informed California’s Employment Development Department on April 29 that the company planned to lay off more than 300 workers on June 28 if it could not meet its operating cash requirements, according to documents obtained by TechCrunch.
Despite the extensive layoffs, Henrik Fisker maintained a somber but determined tone during the call, according to sources. He highlighted that the company had built “something great” and would continue selling its only EV, the Ocean SUV, to interested buyers. He also suggested that laid-off workers might be re-hired once the company stabilizes, according to one attendee.
Many employees first learned of their layoffs when they lost access to Microsoft services like Teams or Outlook. Later in the day, some received an email officially notifying them of their termination, along with one week of severance. Laid-off employees shared similar experiences in LinkedIn posts.
These layoffs come after months of challenges for Fisker and less than a year after the company began full-scale deliveries of the Ocean SUV.
