All Of Canoo’s Employees Are Reportedly On A ‘mandatory Unpaid Break’

Days aft furloughing dozens of its labour without pay, EV startup Canoo told nan remainder of its portion they will beryllium connected a “mandatory unpaid break” done astatine slightest nan extremity of nan year, TechCrunch reported Friday. A institution email seen by nan outlet said labour would beryllium locked retired of Canoo’s systems by nan extremity of Friday, pinch their benefits continuing done nan extremity of this month.

The study follows Canoo’s announcement past week that it was idling its Oklahoma factories and furloughing labour while it worked “to finalize securing nan superior basal to move guardant pinch its operations.” As TechCrunch notes, nan institution reported that it had only astir $700,000 adjacent successful nan slope past month.

Also connected Friday, nan institution announced a 1-for-20 reverse banal split, effective December 24th. Canoo says nan consolidation intends to support its banal listed connected nan Nasdaq reside and propulsion “a broader group of statement and portion investors.”

Canoo was founded successful 2017 to discarded electrical vans and trucks to adventure-seeking customers but has mostly only ever made vehicles for nan US government. As The Verge’s Andrew Hawkins wrote past year, analysts personification warned of its consequence of insolvency arsenic it’s teetered connected nan separator of moving retired of complaint since 2022. Canoo has mislaid a dependable watercourse of executives since then, including each of its founders and, overmuch recently, its CFO and wide counsel.