Fisker Cuts 15% of Workforce and Reserves Additional Funds for Challenging Times Ahead

Fisker is laying off 15% of staff and says it needs more cash ahead of a “difficult year”Electric vehicle startup Fisker is planning to lay off 15% of its workforce and says it likely does not have enough cash on hand to survive the next 12 months. “[W]e have put a plan in place to streamline the company as we prepare for another difficult year,” founder and CEO Henrik Fisker said in a statement. Fisker said Thursday that it finished 2023 with $396 million in cash, though $70 million of that is restricted. The company says it is talking with one of its lenders about making “an additional investment” in the company. Fisker has also been dealing with a number of problems with its Ocean SUV, its only model so far, as TechCrunch reported earlier this month.

Fisker, the electric vehicle startup, is facing financial struggles as it plans to lay off 15% of its workforce. Founder and CEO Henrik Fisker released a statement saying, “[W]e have put a plan in place to streamline the company as we prepare for another difficult year.”

The company reported that it ended the past year with $396 million in cash, although $70 million of that is restricted. Unfortunately, this may not be enough to get them through the next 12 months. They are actively seeking ways to raise additional funds as they shift from direct sales to a dealership model.

Fisker disclosed that they are currently in talks with one of their lenders for a potential investment and also negotiating with a major automaker for a transaction that includes joint development of electric vehicle platforms and manufacturing in North America.

This restructuring comes as Fisker grapples with the challenges of transitioning to a wholesale model through partnerships with dealers. Unfortunately, this shift has had a negative impact on their sales. The company is currently holding thousands of vehicles worth over $500 million in inventory, but has only secured 13 dealership partnerships so far from around 250 interested parties.

On top of these financial difficulties, Fisker has also been struggling with issues regarding their only model, the Ocean SUV, as reported by TechCrunch earlier this month.