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Arrival could lay off 780 workers to finance its electric delivery van

Arrival is a startup already planning the launch of up to three fully electric vehicles in the coming years. The first of them will be an electric delivery van, which obtained certification a few weeks ago to be marketed in Europe. Later, an electric bus and a car developed together with Uber will appear, which they promise will have more interior space than a Rolls-Royce. But for a few months, Arrival has been having some financial problems., something that has been aggravated by the fact of finalizing the preparations for the production of the aforementioned electric van. This could lead to the dismissal of 780 workers.

Companies well established in the electric car sector, such as Tesla, plan to lay off their ranks of workers. The forecast of a major recession has made companies want to cover their economy in case of crisis. Arrival, for its part, has proposed a “reorganization of its business in response to the challenging economic environment”, assured its board in a recent statement to investors. This reorganization is expected to potentially affect up to 30% of your employees Worldwide.

Today, Arrival employs a total of 2,600 people worldwide, according to data provided by the company in the past month of April. Some 780 people could be laid off in the coming months if the company finally decides to carry out the aforementioned cut. This disappearance of jobs It will mean an economic saving of up to 500 million dollars for the company, something that could mean the success and durability of the company for years to come. From the company they accuse of being forced to this decision due to the lack of supplies, the increase in inflation and the still notable pandemic that has been affecting since the past 2020.

The company assured in its statement to investors, that they anticipate that by the end of this year, it will have between 150 and 250 million dollars in cash, something that could directly ruin the plans of the commercial startup of Arrival if they do not find a way to save. effective in the coming months.

According to the company’s forecasts, once they manage to save those 500 million dollars extracted from the maintenance and salary of 30% of their current workforce, they should not have any more economic problems to start the launch of their electric delivery van, since this It will be manufactured in a plant located in Bicester, near Oxford, and which uses a “micro-factory” production system, so the investment it requires is very low in terms of human resources to control and operate it.

Arrival is a company that has gone through very difficult times in recent months. One of her biggest falls saw her through the loss of value of its market capitalization, where it went from the 13,600 million dollars reached in 2021, to the 1,000 million with which it currently operates. “We had 10 years of growth from companies that received extreme valuations. We are now going through a period of stock market normalization, so some companies will survive and others will fall.” said Arndt Ellinghorst, director of data analyst Quantco and a former auto analyst.

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