Current Predicament

In a surprising move, electric van startup Canoo has placed its remaining workforce on a “mandatory unpaid break” through the end of the year. This decision, shared via an internal email and obtained by TechCrunch, reveals that employees will lose access to Canoo’s systems after the day’s close on Friday. Fortunately, their benefits are set to continue until December’s end.

Recent Developments

This announcement follows closely on the heels of another challenging update: nearly 100 employees were furloughed, and an assembly plant in Oklahoma was idled due to financial constraints. The exact number of employees still with the company after these cuts remains uncertain.

• Mandatory unpaid break for remaining staff
• Furlough of nearly 100 employees
• Idling of Oklahoma assembly facility

A Year of Struggles

Canoo’s journey through 2023 has been anything but smooth. The company recently shut down its Los Angeles office, which once served as its headquarters. Moreover, a significant turnover in leadership has seen the departure of key executives like the chief technology officer, chief financial officer, and general counsel.

“In mid-November, Canoo reported having just $700,000 in the bank.”

TechCrunch

Looking Ahead

With financial reserves dwindling to a mere $700,000 as of mid-November, Canoo faces an uphill battle. The company’s future relies heavily on securing new funding and regaining stability. As the year draws to a close, stakeholders and employees alike await strategic moves from CEO Tony Aquila and his team.