Fisker warns staff they could be laid off and its facility could be closed to workers in 2 months

  • Fisker warned staff of potential layoffs in two months, according to 3 employees and an email viewed by BI.

  • The company is exploring options, including prospective buyers and restructuring.

  • Fisker announced a 15% staff cut earlier this year.

Fisker sent staff a notice on Monday telling them they could be laid off from the company in two months, according to 3 employees and an email viewed by Business Insider.

"Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives," the company said in an email to staff. "There is a possibility, however, that these efforts will not be successful."

The memo, which was sent by the company's new restructuring officer, says that if the efforts fail, impacted staff will be terminated effective June 28.

"If the Company must terminate your employment in the future, the job loss will be permanent and the facility will close," it reads.

The email was sent in compliance with the Worker Adjustment and Retraining Notification Act, which requires companies that have more than 100 workers to provide 60 days of notice before a large-scale layoff or plant closure.

The three current employees told BI that everyone they had spoken to at Fisker said they had received the notice. Fisker's main headquarters is located in Manhattan Beach, California, but it also has other facilities in La Palma, California, as well as in some international sites including Munich and Vienna.

A Fisker spokesperson told BI the company is working to find the best path forward.

"Every decision is made following thorough analysis and careful consideration of the available options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory," the spokesperson said in an emailed statement.

"The steps we are taking are intended to give us breathing room to ensure we are maximizing the value of the business and can operate efficiently," the spokesperson added.

Earlier on Monday, CEO Henrik Fisker said the company was making "further reductions" to its workforce and told staff to expect a town hall later this week, according to the three employees and a separate email viewed by BI. The CEO had said in February that the company would make a 15% cut. In an April 23 filing, the company said it planned to further job cuts.

Last week, Business Insider reported that Fisker had told workers in an all-hands meeting that it was in talks with four automakers regarding a potential buyout.

The company warned investors last week that it could seek bankruptcy protection within 30 days if it could not shore up more liquidity. The company said in the regulatory filing that it had just $54 million in cash equivalencies as of April 16 and "believes that its available liquidity will not be sufficient to meet its current obligations."

A spokesperson for Fisker declined to comment.

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Read the original article on Business Insider