It has been a rough start to the year for electric van manufacturer Arrival as the UK-based company announced it will cut jobs to reduce costs.
The company drew a lot of attention to itself by claiming that it would manufacture electric vans within small factories within the UK. Arrival was able to attract investors such as Hyundai with a valuation of $15 billion. Unfortunately, the company has been unable to meet expectations and has been burning through cash for the past two years.
The company announced that it is in dire straits with all of its cash to likely be burned up by the end of this year.
In response to this, the company announced its third series of job cuts by removing an additional 800 jobs from the company.
Arrival’s initial plans were to produce electric vans throughout the UK but have since shifted its focus towards the U.S. The company believes that this decision is the best route to take with the limited resources available to them.
To make matters worse, the company does not believe it will be able to begin commercializing the vehicle until the second half of 2024 which is a two-year delay than what was initially expected.
Source: Financial Times