All of Canoo’s employees are reportedly on a ‘mandatory unpaid break’

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

The study follows Canoo’s announcement past week that it was idling its Oklahoma factories and furloughing employees portion it worked “to finalize securing the superior indispensable to determination guardant with its operations.” As TechCrunch notes, the institution reported that it had lone astir $700,000 near successful the slope past month.

Also connected Friday, the institution announced a 1-for-20 reverse banal split, effectual December 24th. Canoo says the consolidation aims to support its banal listed connected the Nasdaq speech and pull “a broader radical of organization and retail investors.”

Canoo was founded successful 2017 to merchantability electrical vans and trucks to adventure-seeking customers but has mostly lone ever made vehicles for the US government. As The Verge’s Andrew Hawkins wrote past year, analysts person warned of its hazard of insolvency arsenic it’s teetered connected the borderline of moving retired of currency since 2022. Canoo has mislaid a dependable watercourse of executives since then, including all of its founders and, much recently, its CFO and wide counsel.