Fisker, the electric vehicle (EV) startup, announced a workforce reduction of at least 15 per cent, citing insufficient resources to meet its needs in the next 12 months. The move comes in response to potential liquidity challenges and was announced today, 1 March, 2024.
The staff cuts are primarily linked to a shift in the sales strategy from direct-to-consumer to a dealer-partner model. Additionally, Fisker is streamlining operations by reducing its physical footprint and overall expenses.
The company disclosed quarterly results and revealed ongoing negotiations with a major automaker for a potential transaction, which may involve an investment in Fisker, collaborative development of electric vehicle platforms, and manufacturing in North America.
To further address its liquidity challenges, the company is actively engaging with an existing noteholder to explore the possibility of additional investment.
Fisker’s Q4 2023 results showed a total revenue of $200.1 million, marking a $128.3 million increase from Q3 2023. Henrik Fisker, chairman and CEO, acknowledged the challenges faced in 2023, including delays with suppliers impacting the timely delivery of the Ocean SUV. Unexpected difficulties were encountered in establishing a direct-to-consumer sales model simultaneously in North America and Europe.
The American automotive company is known for its focus on sustainable and electric vehicle (EV) technology. Founded by Henrik Fisker in 2007, the company gained prominence with the Fisker Karma, a luxury plug-in hybrid sedan.
After facing financial challenges, Fisker was relaunched as Fisker Inc. in 2016, emphasising all-electric vehicles.
The company aims to deliver stylish, high-performance EVs with advanced battery technology. Notable models include the Fisker Ocean, an electric SUV designed with sustainability in mind.
