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Canoo furloughs workers and idles factory as it scrapes for cash
Struggling EV startup Canoo has announced that it will be furloughing 82 employees and idling its factory in Oklahoma while it attempts to secure emergency funding. The company claims it is currently engaged in “advanced discussions with various capital sources” in an effort to raise the necessary funds to continue operations.
This latest development comes just a few days after board member James Chen resigned, and roughly one month after the departure of the company’s chief financial officer and head lawyer. Additionally, Canoo has been hit with multiple lawsuits from suppliers alleging late payments.
The new furloughs mark yet another setback for the startup, which has already undergone numerous rounds of layoffs and furloughs throughout the year. In fact, it has had to close its Los Angeles office, which previously served as its headquarters. The company’s chief technology officer departed in August, and all of its founders have since left the company.
Canoo has managed to stay afloat thus far thanks to loans from the venture firm run by CEO Tony Aquila. However, the exact amount of production being done at its Oklahoma facility prior to the idling remains unclear.
The company has previously delivered electric vans to NASA, USPS, Walmart, and the Department of Defense for testing purposes, but it has failed to achieve its broader goals of ramping up manufacturing for commercial customers.
Source: techcrunch.com
