- Fisker sent a memo to employees warning them that layoffs could begin on June 28, 2024.
- The carmaker is exploring all possible restructuring options but says it could fail, which would require laying off numerous employees.
- The electric vehicle company’s stock prices have fallen more than 96 percent this year as poor valuations and financial troubles have left the company flirting with bankruptcy.
Bad news seems to be the only news for Fisker these days, as a difficult 2024 continues to worsen for the California-based EV startup. Now the automaker has alerted its employees that they could be affected by mass layoffs this summer
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Fisker’s new restructuring agent, hired to help the troubled company face impending bankruptcy, sent a memo to workers warning them of possible job losses. The automaker says it is doing everything it can to stay afloat, but as a company with more than 100 employees in California, it is required to give employees 60 days’ notice before one, thanks to the Worker Adjustment and Retraining Notification Act Mass layoffs are coming.
More: Facing bankruptcy after missing $8.4 million payment, Fisker hires restructuring agent
“Fisker is carefully considering all options to address our operational liquidity needs, including conducting discussions with potential buyers and investors and exploring various restructuring alternatives,” the company wrote in a memo seen by Business Insider. “However, there is a possibility that these efforts will not be successful.”
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The company also clarifies that if employees are laid off, their jobs will be permanently lost and the facility where they work will be closed. Affected employees will be laid off on June 28th.
BI reports that it spoke to three employees who received the memos, and they said the document was sent to everyone they knew. Fisker’s headquarters are in Manhattan Beach, California, but it also has employees in La Palma, California, Munich, Germany and Vienna, Austria.
The document is just the latest blow to Fisker, whose stock price has plunged more than 96 percent so far this year due to poor ratings, customer complaints, security investigations and shrinking order banks.
Earlier this month, the automaker disclosed in government filings that it has defaulted on a loan payment and may soon have to file for bankruptcy if it is not granted debt relief. The automaker’s CEO is giving a Hail Mary and has reportedly begun talks with four major automakers about acquisition options to save the company.
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