Uk-Based electric vehicle maker Arrival has disclosed plans to downsize its workforce by 50% which is about 800 employees, as it plans to reduce operating costs.
The automaker revealed that the restructuring was necessitated by laying off half of its workforce, as it plans to preserve cash.
The company via a statement, “When combined with other cost reductions in real estate and third-party spending, the company expects to halve the ongoing cash cost of operating the business to approximately $30 million per quarter”.
In its third-quarter report released in November last year, the company disclosed that it had $330 million of cash on hand, noting that it will provide further details of its business plan on the 9th of March this year.
Also commenting on its proposed layoff plan, Arrival’s new CEO Igor Torgov disclosed that the decision to lay off some part of its employees was a tough one, however noting that the company is committed to supporting them during this difficult period.
In his words,
“The actions support our journey to become a champion in innovative products and new more efficient methods of vehicle production, particularly in the important U.S market for commercial electric vehicles.
“We are keenly aware that these decisions, while necessary will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process”.
Investors King understands that this is the third time since July last year that Arrival has taken drastic measures to stay viable. For months, the automaker has been struggling to make do with its limited resources even as it seeks to kick off serial production of its main product, an electric van.
It is however interesting to note that the EV maker in November last year, got a delisting warning from Nasdaq because its stock price was trading at a very low price.