Somber news came from Fisker Automotive this morning as media outlets reported that approximately 160 of its 200 odd employees were laid off due to deepening financial troubles.
Earlier in March company founder and former CEO Henrik Fisker decided to resign from his position due to major disagreements with the board over the direction the company should lead. What's more, Reuters also reported last week that the automaker has reached out to the Kirkland and Ellis law firm for preparations of a possible bankruptcy filing.
The layoff occurred this morning at 8 a.m. local time. Former employees emerging from the California-based Fisker office told reporters about 160 people lost their jobs. The terminated Fisker employees report that the company has not provided any severance pay beyond compensation for unused vacation days.
Beyond the terminations, Fisker Automotive released a company statement after 12 p.m. as well:
"Our efforts to secure a strategic alliance or partnership are continuing in earnest, but unfortunately we have reached a point where a significant reduction in our workforce has become necessary," the statement said.
"The company regrets having to terminate any of its hardworking and talented people. But this was a necessary strategic step in our efforts to maximize the value of Fisker's core assets."
Despite the fact that the company has scaled back its workforce, the execs are desperate to continue its pursuit for opportunities of strategic alliance. Given the outlook of a shrinking company, the possibility of partnership do not look promising at all. A source has told Reuters that about 53 senior managers and executives will continue to work with Fisker, primarily to seek other manufacturers interested in simply purchasing the company assets.
News of Fisker's financial crisis has emerged moments after Tesla announced its first quarter of profit earlier this month. Fisker has built approximately 1,800 units of its $100,000 Fisker Karma plug-in hybrid electric sports sedan.
