Fisker to implement further layoffs amid decreasing cash reserves and looming bankruptcy

Fisker, the electric vehicle startup, is facing a dire financial situation as it scrambles to raise cash to avoid bankruptcy. Less than two months after cutting 15% of its workforce, the company is now planning more layoffs in a last-ditch effort to stay afloat.

According to a U.S. Securities and Exchange Commission filing, Fisker has just $54 million in cash and equivalents as of April 16, with an additional $11.2 million that cannot be immediately accessed. The company is currently trying to raise money to pay off a loan that it defaulted on, with an outstanding balance of over $300 million.

With a global workforce of 1,135 employees as of April 19, down from 1,560 at the end of 2022, Fisker is also looking to reduce its physical footprint. This comes after the departure of a second board member and the hiring of a chief restructuring officer to oversee the company’s budget and potential sale.

Fisker’s troubles stem from the troubled launch of its first electric vehicle, the Fisker Ocean SUV, which has been plagued by software issues, reports of power loss and brake failure, and poor customer service. The SUV is now under federal investigation by the National Highway Traffic Safety Administration, leading to a halt in production and significant price cuts on existing inventory.

If Fisker does seek bankruptcy protection, it would be founder Henrik Fisker’s second automotive startup to do so, following the bankruptcy of Fisker Automotive in 2013. The company’s future remains uncertain as it fights to overcome its financial challenges and salvage its reputation in the electric vehicle market.