Fisker lays off staff as cash dwindles

As liquidity runs ever lower, the firm is pulling out the stops to try to avoid bankruptcy

Fisker lays off staff as cash dwindles
Fisker recently halted production as it seeks to reorganise

A round of layoffs at struggling California EV maker Fisker is the latest sign that the firm is hovering near bankruptcy, with the OEM's charging and software divisions appearing to be targets of the cuts.

The exact number of staff laid off is unclear and the company is yet to comment on the matter, though reports say that the number is in the hundreds. Several Fisker employees have, however, confirmed on networking site LinkedIn that they have been affected.

The job titles of those who have confirmed their dismissal include service technicians, regional transportation mangers, and the automaker's service and operations leader.

The company's software division appears to have been a target of the layoffs, with digital product design lead Christoph Reichert and multiple software engineers and software engineering mangers being let go.

However, recently appointed SVP for enterprise, digital operations and transformation Saydulu Kolasani remains in post.

Mitch Henke, Fisker director of energy and charging infrastructure, is a notable high profile figure to leave the company, writing on LinkedIn, "like many others who were part of the Fisker family, I was also released today after two-and-a-half years".

Henke's exit could signal that Fisker's efforts in the charging sphere may be ending as the company faces the need to direct all of its remaining cash towards direct automotive production and sales revenue.

After reports emerged that CEO Henrik Fisker denied having a hand in the layoffs, saying that administrators from consultancy Huron had instead overseen them as part of a bankruptcy reorganisation, several affected employees that their dismissal was part of a "restructuring".

It is no surprise that an auxiliary business units such as charging has been deemed surplus to requirements, as Fisker has so far struggled to establish momentum towards solid baseline of profitable automotive production. But layoffs in software could ring alarm bells for buyers considering whether to take the plunge on a bargain Ocean, given fears over being stranded without ongoing software support and updates.

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The company issued a going conern earlier this year, indicating its inability to continue without investment from a significant OEM partner, which then pulled out of negotiations in March.

The firm's contract manufacturer, Canadian automotive parts firm Magna International, recently told analysts expects it no more Fisker Oceans to be built, and said it had written off 100pc of its Fisker assets.

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