Days after furloughing dozens of its staff with out pay, EV startup Canoo advised the rest of its workers they are going to be on a “necessary unpaid break” by not less than the tip of the yr, TechCrunch reported Friday. An organization e-mail seen by the outlet mentioned staff can be locked out of Canoo’s techniques by the tip of Friday, with their advantages persevering with by the tip 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 needed to maneuver ahead with its operations.” As TechCrunch notes, the corporate reported that it had solely about $700,000 left within the financial institution final month.
Additionally on Friday, the corporate announced 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 alternate and entice “a broader group of institutional and retail traders.”
Canoo was based in 2017 to promote electrical vans and vehicles to adventure-seeking prospects however has principally solely ever made automobiles for the US authorities. As The Verge’s Andrew Hawkins wrote last year, analysts have warned of its danger of insolvency because it’s teetered on the sting of working out of money since 2022. Canoo has misplaced a gentle stream of executives since then, together with all of its founders and, extra not too long ago, its CFO and general counsel.