Written by Cláudio Afonso | LinkedIn | X
Shares of the struggling EV maker Canoo plunged 27.3% on Friday to a new all-time low of 55 cents after the company furloughed 23% of its factory workers in Oklahoma for 12 weeks, equivalent to three months.
According to the internal memo sent by Canoo‘s General Counsel and Corporate Secretary Hector Ruiz, the EV maker anticipates that your furlough “will last for approximately twelve (12) weeks” while asking workers to be aware “that this timeline may be changed at the sole discretion of the company.”
Speaking to local media outlet Kfor, a worker said, “It irritated me because they just had a town hall meeting or something in September where they said they are doing good and they have plans to get everything up and running.”
Canoo informed employees that during the next 3 months, workers will not receive the regular salary.
“During your furlough period, you will not be actively working, and therefore, you will not receive your regular salary. You may be eligible to apply for unemployment benefits through your state’s unemployment program. To assist you in applying for any eligible benefits, please find your state’s contact information at http://www.careeronestop.org. We will provide you with any necessary documentation to support your application,” Canoo said in the internal memo.
In a statement, the company confirmed on Friday it “has made the difficult decision to temporarily reduce our workforce in Oklahoma City by furloughing 23% of our factory workers for a period of twelve weeks as part of a broader realignment of our North American operations.”
Here’s the full statement shared by the EV maker on Friday.
“Canoo has made the difficult decision to temporarily reduce our workforce in Oklahoma City by furloughing 23% of our factory workers for a period of twelve weeks as part of a broader realignment of our North American operations. This reduction is a continuation of our efforts to consolidate our U. S. workforce which includes redistributing some of our tenured and skilled employees to our OKC and Texas facilities as part of our comprehensive plan and supply chain harmonization to prepare the company for the next phase of growth. We are committed to supporting our 30 impacted workers in OKC during this challenging time and will provide necessary resources to assist them.”
In September, Canoo moved its headquarters from California to Justin, Texas, relocating “approximately 137 engineering roles” to facilities in Oklahoma City and Pryor, Oklahoma.
By then, the company said it planned to “expand and ramp to approximately 150 open positions in the near future” without detailing a specific timeline.
Canoo recently filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (SEC), detailing proposals for stock issuances, revised agreements with investment firm Yorkville Advisors, and the potential for a reverse stock split.
The EV maker executed a 1-for-23 reverse split in March to maintain compliance.
For the second quarter of 2024, Canoo reported $605,000 in revenue, an adjusted EBITDA loss of $38.6 million, and an adjusted net loss of $0.61 per share.
Written by Cláudio Afonso | LinkedIn | X
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