Fisker sent staff a notice on Monday telling them they could be laid off from the company in two months, according to 3 employees and an email viewed by Business Insider.
“Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives,” the company said in an email to staff. “There is a possibility, however, that these efforts will not be successful.”
The letter, which was sent by the company’s new restructuring officer, says if the efforts fail, impacted staff will be terminated effective June 28 “and the facility will be closed.” The letter was sent in compliance with the Worker Adjustment and Retraining Notification Act, which requires companies that have more than 100 workers to provide 60 days of notice before a large-scale layoff or plant closure.
The three current employees told BI that everyone they had spoken to at Fisker said they had received the notice.
Earlier on Monday, Fisker CEO Henrik Fisker said the company was making “further reductions” to its workforce and told staff to expect a town hall later this week, according to the three employees and an email viewed by BI. The CEO had said earlier this year that the company would make a 15% cut.
Last week, Business Insider reported that Fisker had told workers in an all-hands meeting that it was in talks with four automakers regarding a potential buyout.
The company warned investors last week that it could seek bankruptcy protection within 30 days if it could not shore up more liquidity. The company said in the regulatory filing that it had just $54 million in cash equivalencies as of April 16 and “believes that its available liquidity will not be sufficient to meet its current obligations.”
A spokesperson for Fisker declined to comment.
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