EV startup Fisker Inc. is laying off more employees to “preserve cash,” a week after warning investors it would have to make budget cuts to avoid imminent bankruptcy, according to an internal email seen by TechCrunch.
Founder and CEO Henrik Fisker told employees in the email Monday morning that the company “continues to evaluate all viable options for our business, including a potential transaction, and we are committed to identifying potential buyers and ways to inject capital into the business.
“That said, we must preserve our liquidity to be able to keep these options available to us,” he wrote. He previously told staff in a meeting last week that the company was still meeting with automakers under the NDA, which was first reported by Business Insider.
“It is with great pain and sadness that I share the difficult news that we are making further reductions in our workforce today,” Fisker wrote in the email.
It’s unclear exactly how many employees Fisker Inc. is cutting. A spokesperson did not immediately respond to a request for comment. Fisker employed 1,135 people as of April 19, according to a regulatory filing. He had already announced cuts of 15% in February.
The company announced last week that it has hired a chief restructuring officer who is now responsible for approving Fisker Inc.’s budget, as well as the decision-making process if the company is sold. He reported having only $54 million in cash and equivalents as of April 16.
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