Fisker Initiates Fresh Round Of Layoffs To Preserve Cash Amid Bankruptcy Fears

Beleaguered EV maker Fisker Inc. FSRN has reportedly initiated a new round of layoffs amid fears of impending bankruptcy.

What Happened: The electric vehicle (EV) startup’s CEO, Henrik Fisker, informed employees of the decision in an internal email, reported TechCrunch.

The company is "continuing to evaluate all viable options for our business, including a potential transaction, and we are committed to identifying potential buyers and pathways to infuse capital into the business," Fisker reportedly wrote in the email.

"That said, we must preserve cash to help keep these options available to us," he wrote while adding that the company will further reduce staff.

It is unclear as to how many jobs the company aims to cut. Fisker had 1,135 employees as of April 19.

“Fisker is diligently exploring all available options for a successful path forward and to infuse capital into the business. Due to the fluid nature of the situation, we must acknowledge that our efforts have the capacity to directly impact our employees,” a Fisker spokesperson told Benzinga.

Why It Matters: Last week, the company said in a filing that it expects to seek protection under bankruptcy laws within 30 days if unable to receive waivers from its debt holders or raise enough capital to settle its dues.

Fisker in February warned that it may not have enough funds to operate over the year. The company’s shares were delisted from the New York Stock Exchange the following month owing to low share prices and potential investment talks with a major automaker collapsed, leaving Fisker's financial future uncertain.

However, Fisker is not the only EV company laying off employees. Last month, EV giant Tesla Inc announced that it would lay off 10% of its global workforce. Rivian Automotive, too, announced a 1% reduction in workforce.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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