Nikola will lay off 270 employees in a cost-cutting move, aiming to streamline its operations and focus on the North American marketplace.
This strategic decision reflects a trend among companies narrowing their focus due to challenging economic conditions.
It results from the tightening monetary policy of the US Federal Reserve.
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Nikola is currently embroiled in a leadership dispute with founder and major shareholder Trevor Milton.
It also faces opposition to its proposal to increase the number of shares it can issue.
The layoffs will predominantly impact its European operations, with 150 employees affected, while the remaining 120 are based at its Phoenix and Coolidge sites.
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By implementing these cuts, Nikola anticipates reducing its annual personnel-related cash expenditure by $50 million.
Additionally, the firm aims to decrease its annual cash usage to under $400 million by 2024.
Concerns surrounding cash reserves have been mounting among investors in Nikola and other electric-vehicle manufacturers, as slowing sales may lead to the need for further share disposals to raise funds.
