Struggling EV startup Canoo says it has furloughed 82 staff and is idling its manufacturing facility in Oklahoma whereas it grasps for the capital wanted to outlive. The firm claims it’s in “advanced discussions with various capital sources” to lift emergency funding.
The announcement comes just some days after board member James Chen resigned, and roughly one month after the corporate noticed its chief monetary officer and head lawyer depart. Canoo can also be dealing with a number of lawsuits from suppliers over alleged late funds.
The new furloughs cap what has been a tough yr for the startup. The firm has undergone a number of rounds of layoffs and furloughs, and closed the Los Angeles workplace that used to function its headquarters. Canoo’s chief expertise officer left in August, and all the firm’s founders at the moment are gone. In the meantime, it has been saved afloat by loans from the enterprise agency run by its CEO, Tony Aquila.
It’s unclear what Canoo was making at its facility in Oklahoma earlier than deciding to pause operations there. So far, the corporate has delivered electrical vans to NASA, USPS, Walmart, and the Department of Defense for testing. But it has failed at its broader ambitions of ramping up manufacturing for different industrial prospects.
In an unsigned assertion, Canoo mentioned: “We regret having to furlough our employees, especially during the holidays, but we have no choice at this point. We are hopeful that we will be able to bring them back to work soon.” Aquila didn’t instantly reply to a request for remark.
