Arrival may lay off 780 workers to finance its electric delivery truck – News – Hybrids and Electrics

Arrival it’s a start already plans the launch of up to three fully electric vehicles in the coming years. The first of these will be an electric delivery truck, which received the certification to be marketed in Europe. Later they will appear an electric bus there a car developed with Uberwhich they promise will have more interior space than a Rolls Royce. But for a few months, Arrival has had some financial problems., something that has been compounded by finalizing preparations for the production of the aforementioned electric van. This could result in the dismissal of 780 workers.

Well-established companies in the industry electric caras You’re here, are considering redundancies in their ranks of workers. The forecast of a major recession has made companies want to hedge their economy in the event of a crisis. Arrival for its part proposed a “reorganization of its activity in response to the difficult economic environment”, assured its board of directors in a recent statement to investors. This reorganization should affect up to 30% of your employees at the World level.

As of today, Arrival employs a total of 2,600 people worldwide, according to data provided by the company during the last month of April. Some 780 people could be made redundant in the coming months if the company finally decides to make the aforementioned cut. This loss of jobs This will mean an economic saving of up to 500 million dollars for the company, something that could mean the company’s success and sustainability for years to come. From the company they accuse of having been forced into this decision due to the lack of supply, the increase in inflation and the still notable pandemic that has been raging since 2020.

The company assured in its statement to investors, that they expect that by the end of this year, it will have between $150 million and $250 million in cash, which could directly ruin the commercial startup’s plans for Arrival. if they can’t find a way to save money in the months to come.

According to the company’s forecast, once they manage to save these 500 million dollars extracted from the maintenance and salary of 30% of their current workforce, they should not have any economic problems to start the launch. of their electric delivery van, since this It will be manufactured in a factory 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 cross the decline in its market capitalization, where it fell from the $13,600 million reached in 2021, to the $1,000 million it currently operates with. “We’ve had 10 years of growth from companies that have 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 former automotive analyst.

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