Electric vehicle startup Fisker Inc. is laying off more employees to “preserve cash,” a week later warning investors would have to make cuts to avoid an imminent bankruptcy, according to an internal email seen by TechCrunch.
Founder and CEO Henrik Fisker told employees Monday morning in the email 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 avenues.” to inject capital into the business.
“That said, we must preserve cash to help keep these options available to us,” he wrote. He previously told staff in a meeting last week that the company was still meeting with auto companies under NDA, which was first reported by Business Insider.
“[I]“It is with great personal pain and sadness that I give you the difficult news that today we are making further reductions to our workforce,” Fisker wrote in the email.
It is unclear 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. previously cuts announced 15% in February.
The company announced last week that it hired a chief restructuring officer who is now in charge of approving Fisker Inc.’s budget as well as the decision-making process for any sale of the business. He reported that he had only $54 million in cash and equivalents as of April 16.