Read the email Fisker sent to staff warning of layoffs if the company can't correct course
Fisker warned staff they might be laid off if efforts to course correct are unsuccessful. Here's the message they sent to employees.
Michael Tullberg
- Fisker warned staff it might lay them off in two months if efforts to course correct fail.
- The company said its exploring restructuring alternatives and potential sale discussions.
- Fisker has launched a series of layoffs over the past few months.
Fisker warned employees on Monday that they could be laid off in two month and the company's facility could close if the company is unable to course correct.
"Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives," the company said, according to an email viewed by Business Insider and confirmed by three current workers. "There is a possibility, however, that these efforts will not be successful."
The email, which was sent by the company's new restructuring officer, tells staff that they could be terminated effective June 28 and Fisker's "facility will be closed." The company told staff it was bringing in a restructuring officer last week, according to a previous email viewed by BI.
The memo regarding potential layoffs was sent in compliance with the Worker Adjustment and Retraining Notification Act, which requires companies that have more than 100 workers to provide 60 days of notice before a large-scale layoff or plant closure.
Three current employees told BI that everyone they had spoken to at Fisker said they had received the notice. Fisker's main headquarters is located in Manhattan Beach, California, but it also has other facilities in La Palma, California, as well as in some international sites including Munich and Vienna.
A Fisker spokesperson told BI the company is working to find the best path forward.
"Every decision is made following thorough analysis and careful consideration of the available options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory," the spokesperson said in an emailed statement.
"The steps we are taking are intended to give us breathing room to ensure we are maximizing the value of the business and can operate efficiently," the spokesperson added.
Read the full memo below:
As you know, Fisker Group Inc. (the "Company" or "Fisker") has previously communicated that it will provide updates on significant developments that may impact Fisker's workforce. Over the past few months, Fisker's leadership team has been pursuing all avenues to preserve the future of the business and its path forward. Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives. There is a possibility, however, that these efforts will not be successful. Should this possibility materialize, the Company has an obligation to provide "conditional notice" that employees — including yourself — will be terminated on June 28, 2024. If the Company must terminate your employment in the future, the job loss will be permanent and the facility will be closed. The Company has no policy creating transfer, bumping, or reassignment rights for employees laid off from the business. If needed, we will provide you with additional separation information, including information regarding unemployment, COBRA benefits, and severance pay. This notification does not mean the Company is shutting down or ceasing operations, and receiving this conditional notice does not necessarily mean you will be let go. Fisker is operating under challenging circumstances and we are making every effort to work towards an outcome that facilitates new investment or other strategic solutions. We appreciate your dedication and support for one another during this challenging time. Thank you for your hard work and contributions to Fisker. In the meantime, please contact me, John DiDonato, Chief Restructuring Officer at ____________ should you have any questions. Sincerely, John DiDonato
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