EV startup Fisker Inc. is laying off more employees to “keep cash safe,” a week after investors warned they would have to cut spending to avoid a looming bankruptcy, according to an internal email seen by JS.
Founder and CEO Henrik Fisker told employees in the email Monday morning that the company “continues to evaluate all viable options for our business, including a potential transaction, and that we are committed to identifying potential buyers and opportunities to inject capital into the company to inject.”
“That said, we need to preserve cash to keep these options available to us,” he wrote. He previously told staff at a meeting last week that the company was still meeting with car companies under non-disclosure agreements was first reported by Business Insider.
“[I]It is with great personal pain and sadness that I deliver the difficult news that we will be further reducing our workforce today,” Fisker wrote in the email.
It is unclear how many Fisker Inc. employees. deletes. A spokesperson did not immediately respond to a request for comment. Fisker employed 1,135 people as of April 19, according to a filing with the regulator. It previously announced cuts of 15% in February.
The company announced last week that it has hired a chief restructuring officer who will now be responsible for approving Fisker Inc.'s budget, as well as the decision-making process for a possible sale of the company. It reported that it had only $54 million in cash and equivalents as of April 16.
