Electric Vehicle Startup Canoo Places Remaining Employees on Mandatory Unpaid Break
Electric vehicle startup Canoo has made the decision to place its remaining employees on a “mandatory unpaid break” until at least the end of the year, according to a report by TechCrunch.
An email sent to employees stated that they would be locked out of Canoo’s systems starting at the end of the day on Friday, with benefits continuing through December.
This action follows Canoo’s recent announcement of furloughing 82 employees and suspending operations at an assembly facility in Oklahoma due to financial constraints, as reported by TechCrunch. The company has struggled to scale production, with only a small number of demonstration vehicles delivered so far.
Earlier this year, Canoo also shut down its Los Angeles office, which was its original headquarters. The startup has since relocated its corporate office to Justin, Texas, under the leadership of CEO Tony Aquila.
Canoo has undergone significant executive turnover, with key positions like CTO, CFO, and general counsel being vacated. This shift in leadership has led to a strategic pivot towards commercial vehicles under Aquila’s guidance.
Despite securing orders from companies like Walmart and Zeeba for electric vans, as well as providing vehicles to the Postal Service, NASA, and the U.S. Army, Canoo has struggled to translate interest into revenue due to production challenges.