Canoo Places Employees on Unpaid Break - EV Startup News

Canoo Implements Mandatory Unpaid Leave for Remaining Staff

Electric vehicle startup Canoo has initiated a “mandatory unpaid break” for its workforce, extending through at least the year’s end, as detailed in a recent communication reviewed by TechCrunch.

According to the internal email, access to Canoo’s systems will be revoked for employees at the close of business on Friday. Employee benefits, however, are scheduled to continue through December.

Recent Financial Difficulties

This action follows a prior announcement earlier in the week concerning the furlough of approximately 100 employees and the temporary shutdown of an Oklahoma assembly plant, attributed to insufficient capital. The exact number of employees remaining after these initial reductions remains unknown.

Neither the company nor CEO Tony Aquila have yet provided a response to inquiries seeking further clarification.

A Challenging Year for Canoo

Canoo has experienced a series of setbacks throughout the current year. The company recently shuttered its Los Angeles headquarters.

A significant number of key personnel have departed, including the Chief Technology Officer, Chief Financial Officer, and General Counsel.

Financial reports released in mid-November revealed a cash reserve of only $700,000.

The situation highlights the ongoing financial pressures facing the electric vehicle manufacturer.