Arrival plans to business reorganization, cut up to 30% of workforce

Arrival Van and Bus - Arrival plans to business reorganization, cut up to 30% of workforce

, the UK-based company announced plans to reorganize its business, which could see layoffs of up to 30% in its workforce.

Arrival said the move to reorganize its business saw the company start production of the 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, was reported to be cutting 5% of their workforce, while Inc said it would cut 229 jobs.

Arrival specializes in building electric such as electric vans and . Companies have a strategy of producing their 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.