Written by Cláudio Afonso | LinkedIn | X
The EV startup Canoo has started another significant round of layoffs, just two months after relocating employees from California to Texas, as it struggles to stave off bankruptcy.
More than 20 employees were informed of their termination early Wednesday, many of whom had relocated to Texas under the company’s relocation offer.
In September, the company said it would migrate its engineering teams to its two Oklahoma locations – Oklahoma City and Pryor and relocate its corporate headquarters to northern Texas.
“He got an offer from Canoo when they left California to follow them to Texas, which he accepted. But now he’s among the more than 20 people laid off this morning,” a user wrote on Reddit on Wednesday.
The layoffs have gutted key operational teams. The entire service team, except for one technician, has been eliminated, as well as the company’s paint department.
“They had a service manager, field engineer, and 3 techs. One for Okc gov [Oklahoma Government] vehicles, one in Atlanta for USPS, and one traveling tech. They furloughed the travel tech when he was in England, the service manager and the field engineer. The Atlanta guy quit a few weeks ago. So they legit have one tech and that’s it,” another user said.
In early November, the company announced it furloughed 23% of its factory workers in Oklahoma for 12 weeks, equivalent to three months. The former General Counsel Hector Ruiz said at the time that the EV maker anticipated the furloughs to “last for approximately twelve weeks” while asking workers to be aware “that this timeline may be changed at the sole discretion of the company.”
Canoo shares are currently trading at below $0.13 after losing 80% of its value in the last month. Trading volume surged on Tuesday, with 92.54 million shares exchanged—approximately 1,400% above the three-month average daily volume of 6.3 million shares.
Following a reverse stock split earlier this year, Canoo’s year-to-date high was $7.08, recorded in the first weeks of 2024.
After missed production targets, no news on several of the partnerships it signed over the last few years, the departure of several executives, and lawsuits from several suppliers, the company faces the toughest moment since its inception.
In its latest interview, the company’s CEO Tony Aquila reaffirmed Canoo‘s goal of “move up production” next year despite admitting that the next four to six months will be “very tough.”
Written by Cláudio Afonso | LinkedIn | X
