According to media reports, electric vehicle manufacturer Canoo recently laid off 30 workers temporarily at its Oklahoma facility. The company's CFO and general counsel have both resigned, and Canoo is facing serious allegations from employees.
Some employees accuse Canoo of mismanagement and false production claims. These ongoing issues have caused Canoo's stock price to plummet by over 50%, hitting a historic low of $0.37 per share.
Reports state that Canoo currently has only $4.51 million in cash and equivalents, making it challenging to deliver vehicles profitably. In the first half of 2024, Canoo incurred a net loss of $117.6 million and is projected to earn revenue between $50 million and $100 million for the year. Last year, the company delivered just 22 vehicles and is now facing legal issues for unpaid supplier fees.
The 30 employees temporarily laid off represent 23% of Canoo's total workforce. During the 12-week unpaid leave period, their health insurance will remain active until the end of November.
The news comes as a surprise to some, as Canoo's last major statement in September indicated plans to expand into the European market. The company had selected an operational base and described this move as a "significant milestone" in its global expansion strategy.
However, certain issues have come to light, with reports that the CEO's private jet expenses in April exceeded the company's revenue. In late September, Canoo also announced plans to move its headquarters from California to Texas, following Tesla's 2021 relocation.
Canoo released a statement: "Canoo has made the difficult decision to temporarily reduce 23% of our plant workforce in Oklahoma City for a 12-week period as part of a broader adjustment to our North American operations. This layoff is one of our efforts to consolidate our U.S. workforce, including redeploying some skilled technical employees to our facilities in Oklahoma City and Texas. This move is part of our comprehensive plan, including supply chain coordination, to prepare for the next stage of growth."
