Fisker Downsizes Workforce in Effort To Sustain EV Startup

In its struggle to survive, Fisker, an EV startup, has completed a round of layoffs that impacted hundreds of employees. The company’s efforts to secure funding, pursue a buyout, or come to terms with bankruptcy continue during these challenges.

During an unexpected shift to remote work on Wednesday, staff began anticipating potential layoffs. According to many current and previous employees, this shift was out of the norm. In an all-hands meeting, which took place on Wednesday morning, the EV maker confirmed these suspicions to be true.

According to employees who were present at the meeting, Henrik Fisker, founder and CEO, informed the staff that the significant investor to whom the company owes money, along with the chief restructuring officer representing the investor’s interests, advocated for further layoffs. Although the company has not publicly disclosed the entity behind the convertible debt investment, Fisker mentioned Heights Capital Management at Wednesday’s session on layoffs, as reported by two employees. Heights Capital Management runs as a subsidiary of the prominent financial services firm Susquehanna International Group.

An existing employee and a former employee guessed that around 150 individuals are still employed by Fisker.

Layoffs are not an unfamiliar scenario for the company. Beginning with a 15% job cut announced in February, it has undergone multiple rounds of layoffs. According to a regulatory filing from April 19, the company employed 1,135 individuals. Prior to the latest cuts, further layoffs occurred in late April and late May, although the exact extent of workforce reduction remains undisclosed.

Documents gathered by TechCrunch reveal that John DiDonato, a restructuring officer, informed California’s Employment Development Department on April 29 of its intention to lay off over 300 employees on June 28 should the company fail to address its operational cash needs.

Sources indicate that despite the significant job cuts, Henrik Fisker maintained a somber yet proactive demeanor throughout the call. At one point, he expressed confidence in the company’s achievements, stating that they had built “something great.” He affirmed the commitment to continue selling their sole EV, the Ocean SUV, to interested customers. Additionally, he “suggested that laid off workers would be re-hired once the company is back up and running, according to the account of one person who attended the meeting.”