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Electric vehicle start-up Arrival cuts 800 jobs as it focuses on the US

Arrival

Arrival, a UK start-up focused on commercial electric vehicle development, has announced that it will cut its workforce in half as it looks to expand into the US.

The layoffs, which are part of a cost-cutting strategy, will leave the company with 800 employees worldwide.

The firm has had yet to specify where the majority of the job losses would occur.

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The majority of its teams are based in the United Kingdom and Georgia, the latter as a result of the company's decision to withdraw from Russia due to the Ukraine conflict.

Arrival has struggled to expand due to persistent funding challenges, with start-ups generally finding it more difficult to secure supplies and meet increased costs.

employer

Britishvolt was forced to close earlier this month due to financial difficulties.

READ MORE: ELECTRIC VEHICLE MAKER ARRIVAL CUTTING JOBS AGAIN IN A PIVOT AWAY FROM THE UK TO THE US

Arrival had previously stated that it would shift its focus away from its UK operations.

This includes cutting-edge production and development facilities in Oxfordshire, in order to take advantage of US government incentives.

READ MORE: GENERAL ELECTRIC IS CUTTING HUNDREDS OF JOBS IN ITS ONSHORE WIND DIVISION

Arrival anticipates its US Van product will begin manufacturing in Charlotte, North Carolina, in 2024,

This is despite the fact that its first approved and registered vehicles have already started and are still undergoing public road trials in the UK.

That, however, continues to be reliant on obtaining more money.

Arrival said it had appointed Teneo, a financial adviser, to assist in "evaluating strategic alternatives.

This includes opportunities to raise additional capital, optimise its balance sheet, and improve liquidity."

READ MORE: FORD CUTS 3000 JOBS TO FOCUS ON ELECTRIC VEHICLES

The company added: "When combined with other cost reductions in real estate and third-party spending, the company expects to halve the ongoing cash cost of operating the business to approximately $30m per quarter."

The company also appointed Igor Torgov, who joined in February 2020, as its chief executive officer.

He said of the task ahead: "Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change.

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"To unlock these opportunities, we need to make difficult decisions and to take swift action.

"Following a detailed evaluation of Arrival and the wider EV market during the past two months, the leadership team and the board have taken decisive action to ensure the most effective use of our current resources and optimise the efficiency of the business.

"The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles.

"We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100 percent committed to supporting our employees during this difficult process."

Source: Sky News

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