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HomeBusinessCash-Strapped EV Startup Arrival Is Laying Off Half Of Its Staff

Cash-Strapped EV Startup Arrival Is Laying Off Half Of Its Staff

Importantly, Arrival's plan to focus on the US market – and take advantage of Inflation Reduction Act incentives – is contingent on raising additional funds from investors.

Cash-Strapped EV Startup Arrival Is Laying Off Half Of Its Staff - SurgeZirc SA
Cash-Strapped EV Startup Arrival Is Laying Off Half Of Its Staff.

Arrival, an electric transportation startup, is laying off workers for the second time in less than a year. On Monday, the company announced plans to lay off approximately half of its workforce.

Arrival’s workforce will be reduced by about 800 people as a result of the move. Arrival issued a cash-strapped warning in the middle of last year, and the company’s financial situation appears to have worsened since then.

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Arrival had $205 million in cash as of the end of 2022. Arrival expects to reduce the cost of day-to-day operations to around $30 million per quarter after the latest round of layoffs and a slew of other cost-cutting measures.

Importantly, Arrival’s plan to focus on the US market – and take advantage of Inflation Reduction Act incentives – is contingent on raising additional funds from investors.

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Arrival expects to begin Van production in Charlotte in 2024, assuming additional funding is secured.

The EV Startup Arrival also announced a leadership change on Monday. Former Marvel Entertainment CEO Peter Cuneo is handing over day-to-day operations to Igor Torgov, Arrival’s former executive vice president of Digital, less than three months after taking over as CEO.

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Torgov held executive positions at Atol, Bitfury, Yota, Columbus IT, and Microsoft prior to joining the startup in 2020.

It is now up to him to turn around the once-promising startup. Arrival stated that more information about its financial position would be released on March 9th.

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Elize Coetzee for SurgeZirc SA
Elize Coetzee for SurgeZirc SAhttps://new.surgezirc.co.za
Elize Coetzee, a seasoned journalist, is the driving force behind SurgeZirc SA’s world news and world politics coverage. With an unwavering commitment to truth, Elize delves into global affairs, providing live updates, in-depth investigations, and thought-provoking analysis. Whether it’s geopolitical tensions, international diplomacy, or breaking stories, Elize’s incisive reporting keeps readers informed and engaged.
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