Recently, many technology giants have been forced to terminate thousands of layoffs as part of cost-reduction plans. Now London-based electric car manufacturer Arrival has made a similar decision by announcing their restructuring process and the appointment of a new CEO. Unfortunately, this means that half of Arrival’s global workforce will be laid off to achieve long-term economic sustainability for the company.
800 People Will Be Layoffs To Cut Costs
After only three months at the helm of Arrival, former Marvel Entertainment chief Peter Cuneo has stepped back from daily operations and appointed Igor Torgov–formerly executive vice president of Digital for the company–as his successor. Torgov was previously in leadership roles with Atol, Bitfury, Yota Columbus IT, and Microsoft. Concurrently with this announcement came news that Arrival would reduce its workforce by 50%, resulting in layoffs that affected 800 employees.
In an effort to lower costs, Arrival–renowned for its electric cars and plans to launch its own electric buses in the second half of 2021–has announced job cuts. This decision is anticipated to result in cost savings of $30 million this quarter due both to third-party reductions and decreases in real estate expenses.
Arrival Has Been Turbulent Since 2021
Since July, Arrival has taken three drastic steps to remain afloat. Despite going public earlier this year, the company revealed in July 2022 that it would slash its spending by 30%. This meant layoffs for many employees and a severe drop in cash from its December 2020 high of $500 million down to only $205 million last month. In short, Arrival is desperately seeking ways to conserve funds and endure long into the future.
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