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Fisker slashes workforce by 15 percent amid funding crisis

By Nithya Bose in Business News, posted March 2, 2024

Fisker, an electric vehicle maker based in Manhattan Beach, is cutting 15 percent of jobs amid financial challenges and uncertainty about its future.

CEO Henrik Fisker revealed that the company is in advanced discussions with a major automaker for potential investment.

He said: “It’s narrowed down to one large carmaker, and I hope we can close this deal soon.”

This decision to downsize, primarily impacts the sales department.

It follows a disclosure Fisker's existing funds may be insufficient to cover operations for the next year without additional financing.

As of the end of December, Fisker reported having $325.5 million in cash and equivalents.

This is significantly less than the $502.3 million analysts had expected.

Fisker is optimistic about its assets, including about $500 million in vehicle and parts inventories, which are anticipated to bolster cash flow through sales.

Fisker faces production hurdles, technical issues, and scrutiny from short sellers, alongside a broader slowdown in the electric vehicle market due to declining consumer interest.

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Despite these obstacles, Fisker reported fourth-quarter sales of $200.1 million, falling short of the projected $272.9 million.

The company aims to deliver between 20,000 and 22,000 electric vehicles this year, having delivered 4,929 throughout 2023.

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