Fisker’s troubles continue to grow as the company lays off even more workers to try and reduce costs as it struggles to survive and avoid filing for bankruptcy.
Fisker is navigating a labyrinth of trouble as the company tries to avoid bankruptcy
It has been a rough year for struggling EV automaker Fisker. The EV startup is teetering on the brink of outright collapse and the company is not only dealing with multiple federal safety investigations surrounding the Fisker Ocean SUV, but is now in a race against time as it struggles to survive long enough to try and secure cash loans.
One way it has attempted to avoid disaster is by laying off its workforce with the company already doing several prior rounds of layoffs. However, this latest flurry of job cuts is the biggest yet and could signal that the company is sliding into oblivion quicker than many in the industry initially realized.
Hundreds of workers laid off
The company’s latest round of layoffs affected numerous departments
Fisker’s latest layoff announcement came this week with the company holding a virtual meeting where hundreds of workers were laid off on the spot. The company has laid off workers in the past, but this latest batch of layoffs now leaves the firm with only 150 employees. The workers that were impacted by this move worked in multiple departments some of them including the company’s social media, digital content, and design teams.
CEO Henrik Fisker also revealed to employees at the meeting that more layoffs were coming with a large investor in the firm wanting to let go even more people to try and recoup the money that they are owed. Fisker’s current manpower is a far cry from what the company had in April when the firm reported that it employed over 1,000 workers. Employees who were present at the meeting also revealed that Fisker himself was somber, but still had a determined attitude, and even promised that some of the laid-off workers could potentially be brought back. However, with the company’s precarious situation, the chances of that happening are slim at best.
More Fisker Stories
- Fisker Talks with Nissan Collapse; Bankruptcy Looms Larger
- Fisker Shares Collapse After Bankruptcy Report
- Fisker’s Future Potentially In Jepoardy After Company Misses Q4 Production & Sales Targets
Fisker stock in freefall
Fisker’s stock has reflected the company’s bad fortunes
Fisker’s latest moves also come on the heels of the company enduring a beating in the stock market with the value of the stock rapidly plummeting. It wasn’t too long ago that Fisker stock traded for over $20 a share but those days are now over with the stock now trading at a meager 0.056 cents a share. The stock has gotten so low that it was booted off the New York Stock Exchange, and the collapse of partnership talks between Fisker and several automakers has done little to improve Fisker’s fortunes either.
The company also slashed Ocean pricing in an attempt to move them off inventory lots with models now starting at just under $35,000. This reduced pricing comes with a major caveat in the form of Fisker ceasing direct sales of the Ocean to consumers in the entirety of the United States. Instead, only consumers who live near one of Fisker’s dealership partners will be able to buy one. Those that are brave enough to do so will not have access to roadside assistance with the program being cut as part of broader cost-saving measures for the U.S. and Europe.
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