British electric van start-up Arrival plans to seek additional funding and expand in the US to take advantage of green energy subsidies, so it will need about 10% of its remaining workforce to cut costs. We have reduced the number of employees by half, or 800.
The troubled electric car maker said “about 50%” of its 1,600-strong global workforce will leave the company.
Arrival told investors that staff cuts and other measures to cut spending would cut operating costs in half to “about $30m (£24m) per quarter” after the operational review.
The U.S.-listed company has switched strategy from focusing on the U.K. to gaining a foothold in the U.S. van market, with plans to begin production in Charlotte, North Carolina next year “subject to additional capital raising.” is standing
The company supports Joe Biden’s Inflation Reduction Act, a package of $369 billion in subsidies and tax credits for companies investing in electric vehicles and renewable energy technology, as long as the products and parts they manufacture are made in the United States. Hope to benefit.
In the UK, Arrival cut 800 jobs last July after spending heavily on robot-intensive factories in Banbury and Bicester.
The latest layoffs are the first of Igor Torgov, who joined the company last February and is now in the role of Chief Executive Officer.
Turgov will succeed Peter Cuneo, who took over in November when founder and Russian telecoms billionaire Denis Sverdlov stepped down.
Cuneo led a stock market listing that injected $660 million into the company.
But startups across the sector have struggled in recent months, including electric vehicle battery maker British Volt, which collapsed this month after struggling to secure investment.
The company has appointed financial advisor Teneo to evaluate options, including raising more capital and improving its balance sheet.
“We are acutely aware that these decisions, while necessary, will have a significant impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process. increase.”
In its heyday, the company was valued at more than $15 billion on New York’s Nasdaq, but its stock price plummeted in 2022 and is now worth $250 million.
At the end of last year, Arrival said it had $205 million in cash on hand.
At the time of its listing, the company said it might shift to smaller passenger cars after focusing on vans and buses. Initially focused on taxis, consumer vehicles also have potential.
Arrival was founded in West London in 2014 by Sverdlov, who sold the telco and phone maker Yota in 2013.