Days after furloughing dozens of its staff with out pay, EV startup Canoo informed the rest of its employees they are going to be on a “necessary unpaid break” by a minimum of the top of the yr, DailyTech reported Friday. An organization electronic mail seen by the outlet stated staff can be locked out of Canoo’s techniques by the top of Friday, with their advantages persevering with by the top of this month.
The report follows Canoo’s announcement final week that it was idling its Oklahoma factories and furloughing staff whereas it labored “to finalize securing the capital essential to maneuver ahead with its operations.” As DailyTech notes, the corporate reported that it had solely about $700,000 left within the financial institution final month.
Additionally on Friday, the corporate introduced a 1-for-20 reverse inventory cut up, efficient December twenty fourth. Canoo says the consolidation goals to maintain its inventory listed on the Nasdaq change and entice “a broader group of institutional and retail buyers.”
Canoo was based in 2017 to promote electrical vans and vehicles to adventure-seeking prospects however has largely solely ever made automobiles for the US authorities. As The Verge’s Andrew Hawkins wrote final yr, analysts have warned of its threat of insolvency because it’s teetered on the sting of operating out of money since 2022. Canoo has misplaced a gradual stream of executives since then, together with all of its founders and, extra just lately, its CFO and basic counsel.
