- Fisker sent a memo to employees warning them that layoffs could start on June 28, 2024.
- The automaker is pursuing all possible restructuring options, but says that it might fail, which would require it to let numerous employees go.
- The EV company’s share prices have fallen more than 96 percent this year, as bad reviews and financial difficulties have left it flirting with bankruptcy.
Bad news seems to be the only news for Fisker these days, as the California-based EV startup’s tough 2024 continues to worsen. Now, the automaker has alerted employees that mass layoffs could begin affecting them this summer
Fisker’s new restructuring officer, who was hired to help the embattled company as it flirts with bankruptcy, sent a memo to workers warning them of the possible job losses. The automaker says it is doing everything it can to stay afloat but, as a company with more than 100 employees in California, must provide its staff with 60 days notice before a large-scale layoff, thanks to the Worker Adjustment and Retraining Notification Act.
More: Fisker Faces Bankruptcy After Missing $8.4M Payment, Hires Restructuring Officer
“Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives,” the company wrote in a memo seen by Business Insider. “There is a possibility, however, that these efforts will not be successful.”
The company further clarifies that, if employees are terminated, the jobs will be lost permanently, and the facility at which they work will shut down. Impacted staff will be let go on June 28.
BI reports that it spoke to three employees who received these memos, and they said the document was sent to everyone they knew. Fisker’s headquarters is located in Manhattan Beach, California, but it also employs people in La Palma, California, Munich, Germany, and Vienna, Austria.
This document is just the latest blow to Fisker, whose share price has plummeted more than 96 percent so far this year, following bad reviews, customer complaints, safety investigations, and shrinking order banks.
Earlier this month, the automaker revealed in government filings that it failed to make a loan payment, and that it may have to file for bankruptcy soon if it is not afforded debt relief. The automaker’s CEO is throwing a Hail Mary, and has reportedly started talks with four major automakers over buyout options to save the company.
