After announcing this week that it furloughed 82 employees, EV startup Canoo sent an email to remaining workers informing them of a “mandatory unpaid break” effective immediately. The email stated that employees would be locked out of the company’s systems starting at the end of the day on Friday, with the break expected to last at least through the end of the year as Canoo works to secure the necessary capital to proceed with its operations.
Canoo has been grappling with financial difficulties, legal challenges, and the departure of key executives over the past year. The company had previously furloughed 30 employees earlier in the fall. In its announcement on Wednesday, Canoo disclosed that it is currently engaged in “advanced discussions with various capital sources” to address its financial needs.
In a statement addressing the furloughs, Canoo expressed regret at having to take such measures, especially during the holiday season. However, the company emphasized that it has no alternative at this point. Canoo remains optimistic about the future and hopes to rehire the furloughed employees soon once the situation stabilizes.
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