According to media reports, struggling electric vehicle startup Canoo has informed 82 employees to temporarily go on furlough and has halted production at its Oklahoma factory. The company stated it is currently engaged in "deep discussions" with multiple capital sources to secure emergency funding.
Just days ago, Canoo board member James Chen announced his resignation. About a month earlier, the company's Chief Financial Officer and Chief Legal Officer also stepped down. Additionally, Canoo is facing multiple lawsuits from suppliers alleging overdue payments.
The furlough of employees marks the end of a challenging year for Canoo. The company has undergone multiple rounds of layoffs and production halts and closed its Los Angeles office, which had served as its headquarters. In August, the company's Chief Technology Officer left, leaving all of its founders departed. Meanwhile, Canoo has managed to stay afloat through loans provided by a venture capital firm run by CEO Tony Aquila.
It remains unclear what products Canoo had produced at the Oklahoma factory before halting operations. To date, the company has delivered electric vans for testing to NASA, USPS, Walmart, and the Department of Defense. However, it has failed to achieve its ambitious goal of scaling production and serving more commercial clients.
In an unsigned statement, Canoo said: "Regrettably, we had to furlough employees temporarily, but at this moment, we have no other choice. We hope to bring them back to work as soon as possible." Aquila did not immediately respond to requests for comment on the matter.
