- After suddenly focusing on the US market for planned production and sales, EV startup Arrival has announced plans to lay off 50% of its staff to cut costs.
- The company has canceled plans for all models except the electric van, for which 10,000 have been ordered from UPS.
- Many EV startups currently face an uncertain future. This is due in part to post-pandemic capital shortages, rising costs, and supply issues.
Just three months after announcing plans to focus all of its energy on the U.S. market, Arrival is set to make further downsizings after significantly reducing its fleet plans in early 2022. The company laid off his 50% of its workforce this week to cut costs and is expected to eventually have about 800 employees.
Last year, the company dropped plans for bus and passenger car models and focused on electric vans, planning a UPS fleet that would be built in one of Arrival’s microfactories. The EV startup, which already has its US headquarters in Charlotte, North Carolina, has announced plans for his second microfactory in South Carolina after the first microfactory opened in South Carolina. In the meantime, the company, based in Bicester, England, has made considerable progress in its production plans for a large coach bus and has also obtained model certification.
Arrival will soon become a much smaller company dedicated to electric vans, a purpose-built model for logistics companies and other businesses.
This week, the company appointed a new CEO and maintains plans to begin assembling vans in South Carolina in 2024, but “we need to raise additional funding.” , is cutting costs and cutting hundreds of employees just months after laying off nearly all of its UK staff. At the end of 2022, the company still had $205 million in cash.
“Combined with other cost savings in real estate and third-party spending, the company expects to halve its ongoing cash costs of operating its business to approximately $30 million per quarter,” the company said. I’m here.
In November, Arrival cited the Inflation Reduction Act (IRA), which is expected to provide tax credits of $7,500 to $40,000, as a motivation for moving to the states.
But even in a more favorable situation from a tax perspective, Arrival faces many of the same problems, including many of its competitors such as BrightDrop and Rivian. Note that both of these competitors have already started producing their respective electric vans.
If it feels like many EV startups just getting close to production are trying to cut costs by cutting a large portion of their workforce, that’s why even those that have already started production, including Rivian, Because that’s actually the trend at the moment. Arrival is the latest startup facing increasing pressure as it nears statewide production launch amid growing skepticism in the tech sector regarding EV startups.