Electric vehicle (EV) maker Fisker has alerted its employees about the looming possibility of layoffs and the closure of its facility within the next two months if the company fails to secure its financial footing.
In an email seen by Insider and reportedly confirmed by several Fisker Inc. employees, the EV startup acknowledged its ongoing efforts to tackle cash flow challenges. These efforts include engaging in discussions with potential buyers and investors, as well as exploring potential restructuring options. However, the email also cautioned that “there is a possibility… that these efforts will not be successful.”
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The email, said to be sent by the company’s newly appointed restructuring officer, indicated that some staff terminations could take effect as early as June 28, with the potential closure of the company’s facility. This communication appears to be part of Fisker’s efforts to comply with the Worker Adjustment and Retraining Notification Act, which mandates that companies with over 100 employees provide 60 days’ notice before large-scale layoffs or plant closures.
See also: Fisker CEO Reveals Talks With Potential Buyers Amid Struggles, Seeks Viable Acquisition Deal
A spokesperson for Fisker underscored the company’s determination to chart the best course forward. “Every decision is made following thorough analysis and careful consideration of the available options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory,” the spokesperson stated.
Following is the email in full:
As you know, Fisker Group Inc. (the “Company” or “Fisker”) has previously communicated that it will provide updates on significant developments that may impact Fisker’s workforce. Over the past few months, Fisker’s leadership team has been pursuing all avenues to preserve the future of the business and its path forward. Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives.
There is a possibility, however, that these efforts will not be successful. Should this possibility materialize, the Company has an obligation to provide “conditional notice” that employees — including yourself — will be terminated on June 28, 2024. If the Company must terminate your employment in the future, the job loss will be permanent and the facility will be closed. The Company has no policy creating transfer, bumping, or reassignment rights for employees laid off from the business. If needed, we will provide you with additional separation information, including information regarding unemployment, COBRA benefits, and severance pay.
This notification does not mean the Company is shutting down or ceasing operations, and receiving this conditional notice does not necessarily mean you will be let go. Fisker is operating under challenging circumstances and we are making every effort to work towards an outcome that facilitates new investment or other strategic solutions. We appreciate your dedication and support for one another during this challenging time. Thank you for your hard work and contributions to Fisker.
In the meantime, please contact me, John DiDonato, Chief Restructuring Officer at ____________ should you have any questions.
