EV Startup Arrival to Cut Workforce by Half Due to Financial Challenges
Electric transport startup, Arrival, announced on Monday plans to lay off approximately 50 percent of its workforce for the second time in less than a year. This move will reduce the company’s headcount to around 800 employees, reflecting the company’s worsening financial situation since it warned of being cash-strapped in the middle of 2021. As of the end of 2022, Arrival had $205 million cash on hand, but following the latest round of layoffs and other cost-cutting measures, the company expects to reduce the cost of day-to-day operations to approximately $30 million per quarter.
The company’s plan to focus on the US market, taking advantage of Inflation Reduction Act incentives, is contingent on the acquisition of additional funding from investors. If successful in securing additional financing, Arrival anticipates starting Van production in Charlotte in 2024.
Alongside the news of the layoffs, Arrival also announced a change in leadership. Peter Cuneo, former Marvel Entertainment CEO, who took over as Arrival CEO less than three months ago, is handing over day-to-day operations to former Executive Vice President of Digital, Igor Torgov. Torgov has held numerous leadership positions at companies such as Atol, Bitfury, Yota, Columbus IT, and Microsoft before joining the startup in 2020. He now holds the responsibility of turning around the once-promising startup.