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Fisker plans more layoffs as cash dwindles and bankruptcy looms | Prime Time News24


Fisker says it’s planning extra layoffs lower than two months after reducing 15% of its workforce, because the EV startup scrambles to lift money to remain alive. Fisker expects to hunt chapter safety inside the subsequent 30 days if it may possibly’t give you that cash, in accordance with a U.S. Securities and Trade Fee regulatory submitting.

The imperiled firm mentioned within the regulatory submitting Tuesday it had simply $54 million in money and equivalents as of April 16, and one other $11.2 million that may’t be instantly accessed. Fisker mentioned within the submitting that it’s at the moment making an attempt to lift cash to repay a mortgage that it defaulted on with a view to keep away from chapter. The excellent steadiness as of mid-January was north of $300 million.

Fisker nonetheless employed 1,135 individuals globally as of April 19, in accordance with the submitting. That’s down from 1,560 on the finish of 2022, and round 1,300 on the finish of September 2023. The corporate additionally mentioned Tuesday that it will likely be “lowering its bodily footprint.”

This follows Fisker’s announcement Monday night {that a} second member of its board of administrators has left the corporate, with the primary coming on the finish of March. The corporate has additionally employed a chief restructuring officer who’s now solely accountable for approving Fisker’s price range, in addition to the decision-making course of for any sale of Fisker’s enterprise.

Fisker finds itself on the point of chapter following a troubled launch of its first electrical automobile, the Fisker Ocean SUV, that kicked off in June 2023.

The Ocean has been hampered by quite a few issues, together with buggy software program, studies of sudden energy loss and brake failure, and inadequate customer support, as Prime Time News24 reported in February. Fisker struggled to fulfill inner gross sales targets and misplaced monitor of thousands and thousands of {dollars} of buyer funds for among the autos it did promote, triggering an inner audit that helped get well a majority of that cash. It has spent the previous couple of months trying to pivot to a dealership mannequin.

The Ocean is now topic to 3 separate federal investigations from the Nationwide Freeway Site visitors Security Administration. The corporate has not issued any remembers, however has paused manufacturing of the SUV. Within the meantime, it slashed costs on its current stock by as a lot as 39% in an try to generate short-term money. The corporate has additionally been delisted from the New York Inventory Trade.

If Fisker finally seeks chapter safety, it could be founder Henrik Fisker’s second automotive startup to take action. His earlier effort, Fisker Automotive, filed for Chapter 11 chapter safety in 2013.

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