All is not well with the British electric vehicle (EV) startup, Arrival. The company has announced it could layoff nearly one-third of its staff.
Arrival is restructuring its operations, and up to 30 percent of its workforce may be dumped on the labor market. With a current complement of over 2,500 employees, that could translate into as many as 800 job cuts.
According to the company, the decision was made to cope with challenging economic conditions.
The changes would help Arrival to reduce its expenses by 30 percent and reach its targets through 2023. It wants to limit its spending to the $500 million cash it has in hand, reports Financial Times.
The British company hopes to start producing its much-anticipated electric delivery vans this quarter, of which 10,000 units will be delivered to UPS.
Arrival is in good company here as Tesla has also announced job cuts, affecting up to 10 percent of its salaried workforce. Similarly, Rivian has already hinted at possible layoffs and may announce them as early as this week, even as it tries to ramp up production of its R1T pickup truck and R1S SUV.
Arrival’s stock gained 3.5 percent following the news of the upcoming layoffs.
Arrival went public using the Special Purpose Acquisition Company (SPAC) route and planned to manufacture electric vehicles using smaller, less expensive hubs. Its stock lost 80 percent in 2022 alone and is yet to record a profit. It recorded a $10.4 million loss in the first quarter of 2022.