Electric van startup Arrival said it will cut half of all jobs globally and has appointed company insider Igor Torgov as the British company’s new CEO.
Arrival will undergo a “restructuring” to “refocus its resources” on the production of its electric van in 2024 from its facility in Charlotte, US. This plan, which comes amid a cash crunch, is “subject to raising additional capital”.
Torgov, previously EVP of digital at Arrival, has taken over from interim CEO Peter Cuneo as full-time chief executive.
“The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles,” said Igor Torgov, CEO, Arrival.
By reducing its headcount and cutting “real estate and third-party spending”, Arrival estimates to operate at a cash cost of $30m (£24.2m) per quarter.
At the end of 2022, the company said it had cash on hand of $205m (£165.7m).
London-headquartered Arrival originally intended to begin the production of its electric vans in Bicester but switched to North Carolina, US, citing more favourable margins, higher market size and tax credits.
It is currently in the process of building an electric van, bus and car.
Torgov added: “We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process.”
In 2021, Arrival went public in the US on the tech-heavy Nasdaq stock exchange through a merger with a special purpose acquisition company. Its share price has been on a downward trajectory since, earning it a non-compliance letter from the Nasdaq after it failed to meet trading requirements.
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