Electric vehicle (EV) startup Fisker is grappling with financial challenges, leading to significant layoffs as it seeks funding, a buyout, or prepares for potential bankruptcy.
The layoffs, affecting hundreds of employees, were announced during an all-hands meeting held after the company directed everyone to work from homeāan unusual move according to multiple current and former employees.
Founder and CEO Henrik Fisker informed employees that a major investor, to whom the company owes money, along with a chief restructuring officer working on behalf of the investor, pushed for further layoffs. While Henrik Fisker did not disclose the investor’s identity, he mentioned Heights Capital Management, an affiliate of Susquehanna International Group, during the meeting.
Estimates suggest that only about 150 employees remain at the company, indicating a substantial reduction from its previous workforce of 1,135 as of April 19.
Fisker has undergone several rounds of layoffs, including a 15% workforce cut announced in February, followed by additional layoffs in late April and late May before the recent cuts.
Despite the challenges, Henrik Fisker expressed determination during the meeting, stating that the company had built “something great” and would continue selling its only EV, the Ocean SUV, to interested buyers. He also indicated that laid-off workers could be re-hired once the company stabilizes.
The layoffs were abrupt for many employees, who initially discovered their termination by losing access to Microsoft services like Teams or Outlook. They later received an email confirming their termination with one week of severance pay.
