Arrival said the move to reorganize its business saw the company start production of the Arrival Van in the third quarter as planned.
Following the announcement, Arrival shares rose 3.4% to $1.51 in extended trading.
Arrival said the complex economic challenges forced them to restructure. The company’s move is expected to cut spending by 30% to help meet their target by the end of 2023 using $500 million.
Challenging economic conditions have forced several electric vehicle manufacturers to take steps to save by laying off employees. Previously, Rivian was reported to be cutting 5% of their workforce, while Tesla Inc said it would cut 229 jobs.
Arrival specializes in building electric commercial vehicles such as electric delivery vans and buses. Companies have a strategy of producing their electric vehicles using smaller and cheaper factories.
Its US-listed shares have plunged 80% during 2022, as investors worry about global economic conditions. In the first quarter, Arrival posted a net loss of $10.4 million.