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Fisker, an electric vehicle startup, to lay off 15% of workforce due to financial difficulties

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EV startup Fisker to lay off 15 pc of workforce amid cash crunch

Fisker, a popular Electric Vehicle (EV) startup, is facing some financial challenges leading to a 15% reduction in its workforce. The company is exploring options like investment from a large automaker, joint development of EV platforms, and manufacturing in North America to address liquidity issues.

As per the quarterly results announced by Fisker, the company is in discussions with an existing noteholder for an additional investment. The decision to lay off 15% of its workforce is mainly due to transitioning from a direct-to-consumer sales model to a Dealer Partner model, along with other operational streamlining measures to reduce expenses.

Despite reporting a significant increase in total revenue to $200.1 million in Q4 2023, Fisker faced challenges in 2023, including delays with suppliers and hindrances in establishing a direct-to-consumer sales model. Henrik Fisker, Chairman and CEO of the company, acknowledged the setbacks and emphasized the need to adapt to the changing market dynamics.

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The company’s focus on restructuring and potential partnerships highlights the evolving landscape of the EV industry. This move signifies Fisker’s efforts to navigate through the challenges and position itself for sustainable growth in the competitive market. Stay tuned for further developments in Fisker’s journey towards reshaping the future of electric mobility.

(Image source: IANS)

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