Fisker (NYSE:FSR) layoffs are coming for the electric vehicle (EV) company’s employees as it issues a warning about 2024 operations.
According to an update from Fisker, the company is cutting 15% of its workforce. These layoffs are mostly connected to its switch from a direct-to-consumer sales strategy to a Dealer Partner model.
At the same time it announced layoffs, Fisker also said it will be streamlining operations. This will see the company reduce its physical footprint and expenses. Adding to this is the company halting work on new EV models unless it secures a partnership.
Fisker Layoffs Could Get Worse
Fisker also mentions a going concern warning in its report, as it doesn’t have enough cash to get through 2024. It’s seeking additional funding from a current noteholder but can’t be sure it will get the money.
If things go south for Fisker this year, more layoffs could be on the way:
“If the financing is not available, or if the terms of financing are less desirable than Fisker expects, the company may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects.”
FSR stock is down 40.3% as of Friday morning.
There are more stock market stories worth reading about below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
