Fisker Automotive, the struggling government-backed hybrid sports-car maker, on Friday terminated most of its rank-and-file employees in what sources said was a last-ditch effort to conserve cash and stave off a potential bankruptcy filing.
Fisker, which raised $1.2 billion from investors and tapped nearly $200 million in government loans, has “at least” $30 million in cash on hand, according to a source familiar with the company’s finances.
About 160 workers were fired at a Friday meeting at Fisker’s Anaheim, Calif., headquarters, according to a source who attended the meeting. They were told that the company could not afford to give them severance payments.
Fisker confirmed in a statement that it let go about 75 percent of its workforce but did not specify the number of workers. It called the move “a necessary strategic step in our efforts to maximize the value of Fisker’s core assets.”
“Unfortunately we have reached a point where a significant reduction in our workforce has become necessary,” Fisker said, adding that it was searching for a strategic partner.
Most don’t believe that Fisker will find any form of strategic partner to help bail it out. In fact, company founder Henrik Fisker already left the company in mid-March, resigning as Chairman of the Board.
The only ones left on board are 53 executives and other senior management. They’re tasked with trying to sell off parts of the company and seeing what they can manage to make a profit off of.
This puppy is going down. No wonder they waited until Friday night to break the news.