US-based electric truck manufacturer Nikola Corp. has announced measures to conserve cash. The company is laying off 270 employees, which represents approximately 23 per cent of its workforce. Along with this, Nikola will its electric truck efforts to North America.
The layoffs will affect 150 employees who were supporting Nikola’s European programs, while an additional 120 employees based at the company’s Phoenix and Coolidge, Arizona sites will also lose their jobs. Following the reduction, Nikola will retain approximately 900 employees. The company anticipates these cuts will decrease personnel-related cash spend by over $50 million annually. As a result, Nikola’s annual cash spend is projected to decline to under $400 million by 2024.
While talking about the company’s proactive approach to cost management and operational efficiency, CEO Michael Lohscheller emphasized said, “Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks. We are proactively managing costs and reducing expenses. We are streamlining operations, including our organizational structure, to efficiently execute our objectives.”
Nikola has undergone significant changes in its leadership and operations following the indictment of its founder and former CEO, Trevor Milton, for federal securities fraud. The company has made progress in appointing a new CEO and preparing for commercial production, but it has also faced challenges along the way.
American vehicle manufacturer is focused on the development and manufacturing of zero-emission electric and hydrogen fuel cell vehicles. It specializes in the production of heavy-duty trucks, specifically targeting the commercial transportation sector.
