Arrival is going through another restructuring — this time led by a newly appointed CEO — that will slash its workforce by about 50% as the U.K.-based commercial EV company attempts to reduce operating costs and preserve cash.
The company said Monday that Igor Torgov, former executive VP of digital at the company, has been hired as its CEO. Prior to Arrival, Torgov held a number of CEO, COO and other leadership positions at Atol, Bitfury, Yota, Columbus IT and Microsoft.
The cuts announced Monday would reduce its workforce by 50%, to about 800 employees globally. Arrival said the layoffs along with other reductions in real estate and third-party spending will help it cut operating costs by $30 million a quarter.
This is the third time since July that Arrival has taken drastic measures to stay viable.
The company, which went public in 2021 via a merger with a special purpose acquisition company, announced in July a restructuring plan that included a 30% reduction in spending across the entire business that could “potentially impact up to 30% of employees globally.” Arrival said, at the time, the plan would allow the company to meet its targets through late 2023 using the $500 million of cash it had on hand.
As of December 31, 2022, that cash-on-hand number had dropped to $205 million.
The company, which has centered its business plan around using microfactories to build its products, was initially focused on its electric bus product, which achieved certification in the European Union in May 2022. The plan was to start producing with customer models by the second half of the year.
In October, just a few months from its first restructuring, the company said it was shifting its focus to the United States and away from the U.K. market, where it is headquartered and where the first EV vans were supposed to be delivered. Arrival said it expects to start production of the van in Charlotte, North Carolina in 2024, subject to raising additional capital.
Source @TechCrunch
