Fisker, the electric vehicle startup, is planning to reduce its workforce by 15% due to financial difficulties.

On March 1st, Fisker, an electric vehicle (EV) startup based in San Francisco, announced plans to lay off at least 15% of its workforce due to insufficient resources to meet its needs over the next year. Alongside this announcement, Fisker revealed ongoing negotiations with a major automaker for a potential transaction, which could involve investment, joint electric vehicle platform development, and manufacturing in North America.

In light of potential liquidity challenges, Fisker is engaging with an existing noteholder for a potential additional investment. The company also disclosed intentions to reduce its workforce by around 15%, primarily linked to transitioning its sales strategy from direct-to-consumer to a Dealer Partner model. Additionally, Fisker is streamlining operations, including reducing its physical footprint and overall expenses.

In its quarterly report, Fisker disclosed total revenue of $200.1 million in Q4 2023, marking a $128.3 million increase from Q3 2023. Henrik Fisker, Chairman and CEO, acknowledged 2023 as a challenging year for the company, citing delays with suppliers and obstacles in implementing a direct-to-consumer sales model in both North America and Europe simultaneously.