A week after warning investors that layoffs would be needed to avoid impending bankruptcy, EV startup Fisker Corp. is trying to “protect cash,” according to an internal email seen by TechCrunch. They are also laying off employees.
Founder and CEO Henrik Fisker said in an email to employees Monday morning that the company “continues to evaluate all viable options for the business, including the possibility of a transaction. “We are fully committed to identifying potential buyers and channels to inject capital into the business.”
“That being said, you need to conserve cash to be able to take advantage of these options,” he wrote. He previously told staff at a meeting last week that the company was still in discussions with car companies under NDAs, a story first reported by Business Insider.
“[I]”It is with great personal pain and sadness that I share the difficult news today that we will be making further reductions in our workforce,” Fisker wrote in an email.
It's unclear how many employees Fisker will cut. A spokesperson did not respond to a request for comment. Fisker employed 1,135 people as of April 19, according to regulatory filings. The company previously announced a 15% reduction in February.
The company announced last week that it has hired a chief restructuring officer who will be responsible for Fisker's budget approval and divestiture decision-making process. It reported cash and equivalents of just $54 million as of April 16.