Fisker said it plans further cuts in the next two months after cutting 15% of its workforce as EV startups scramble to raise capital to survive. If Fisker is unable to raise the funds, it plans to file for bankruptcy protection within the next 30 days, according to a regulatory filing with the U.S. Securities and Exchange Commission.
The crisis-hit company said in a regulatory filing Tuesday that it had just $54 million in cash and equivalents as of April 16, with another $11.2 million not immediately accessible. Fisker said in his filing that it is currently trying to raise funds to repay defaulted loans to avoid bankruptcy. As of mid-January, the balance was over $300 million.
Fisker still employed 1,135 people worldwide as of April 19, according to filings. This is down from 1,560 at the end of 2022 and about 1,300 at the end of September 2023. The company also announced Tuesday that it will “reduce its physical footprint.”
This follows Fisker's announcement Monday night that the second member of the board will retire and the first will take office at the end of March. The company also hired a chief restructuring officer, who is now solely responsible for approving Fisker's budget and the decision-making process regarding the sale of Fisker's business.
Fisker is on the verge of bankruptcy after the launch of its first electric vehicle, the Fisker Ocean SUV, which was launched in June 2023, was hit by trouble.
As TechCrunch reported in February, The Ocean has been hampered by a number of issues, including buggy software, reports of sudden power loss and brake failure, and poor customer service. Fisker struggled to meet internal sales goals, lost track of millions of dollars in customer payments for some of the vehicles it sold, launched an internal audit, and was able to recoup most of that money. The company has been trying to pivot to a dealer model in recent months.
Ocean is currently the subject of three separate federal investigations by the National Highway Traffic Safety Administration. The company has not announced any recalls, but it has temporarily suspended production of the SUV. Meanwhile, it has reduced prices on existing inventory by up to 39% to generate short-term cash. The company was also delisted from the New York Stock Exchange.
If Fisker ultimately files for bankruptcy protection, it will be founder Henrik Fisker's second auto startup. His previous endeavor, Fisker Automotive, filed for Chapter 11 bankruptcy in 2013.