Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Electric vans startup Arrival to cut 800 jobs amid focus on US market

by January 31, 2023
January 31, 2023
Electric vans startup Arrival to cut 800 jobs amid focus on US market

The British electric vans startup Arrival is cutting 800 jobs, about half its remaining workforce, to reduce costs as it seeks extra funding and plans US expansion to take advantage of green energy subsidies.

The troubled electric vehicle maker said “approximately 50%” of the company’s 1,600-strong global workforce would leave the company.

Arrival told investors that the job cuts, and other measures to trim spending, would results in a halving of its operating costs to “approximately $30m (£24m) per quarter” following a review of its operations.

The US-listed company has switched its strategy from focusing on the UK to developing a foothold in the US van market, with plans to start production in Charlotte, north Carolina, next year “subject to raising additional capital”.

It hopes to benefit from Joe Biden’s Inflation Reduction Act, a package of $369bn in subsidies and tax credits for companies investing in electric vehicles and renewable energy technologies, as long as the products and parts they manufacture are made in the US.

In the UK, Arrival spent heavily on robot-heavy factories in Banbury and Bicester but cut 800 jobs last July.

The latest job cuts are the first act of Igor Torgov, who joined the company last February and has now taken on the role of chief executive.

Torgov replaces interim chief Peter Cuneo, who stepped into the role in November when founder Denis Sverdlov, a Russian telecoms billionaire, stepped aside.

Cuneo led the stock market listing that injected $660m into the company.

However, start-ups across the sector have struggled in recent months including Britishvolt, the electric vehicle battery maker which collapsed into administration this month after struggling to secure investment.

The company has appointed financial advisory firm Teneo to assess options including raising more capital and improving its balance sheet.

Torgov said: “The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles.

“We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process.”

The company was valued at more than $15bn on the Nasdaq in New York at its height, but the shares slumped during 2022 and the firm is now worth $250m.

Arrival had cash on hand of $205m at the end of last year, it said.

On listing, the firm had said it planned to focus on vans and buses before potentially moving into smaller passenger vehicles, with a focus at first on taxis, but with the possibility of cars for consumers too.

Arrival was founded in west London in 2014 by Sverdlov, who sold telecoms firm and mobile phone maker Yota in 2013.

Read more:
Electric vans startup Arrival to cut 800 jobs amid focus on US market

0
FacebookTwitterGoogle +Pinterest
previous post
Tim Scott, Cory Booker still hoping for bipartisan police reform despite slim prospects
next post
Millions of JD Sports customers at risk after cyberattack

You may also like

UK’s first lithium refinery to be built in...

November 7, 2022

Government injects £54m into the development of trustworthy...

June 15, 2023

Peppa Pig and Buzz Lightyear make Hamleys list...

September 30, 2022

What to look out for in Kwarteng’s mini-budget

September 22, 2022

Sunak to hold talks about food inflation with...

May 5, 2023

From C-Suite to Entrepreneur: Jeannette Linfoot’s Journey

May 23, 2024

Four-day working week requests to come ‘flooding in’ 

March 27, 2023

Trump’s media company shares plummet to record low...

August 20, 2024

UK economy showed no growth in February

April 13, 2023

How to Wear a Casual Kilt with Confidence

July 11, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Omaha city councilman mounts bid to succeed outgoing House Republican Rep. Don Bacon

      July 3, 2025
    • Frasers Group secures potential £3.5bn war chest to fund growth and acquisitions

      July 3, 2025
    • Roomix raises £850k to expand family-focused custom furniture platform

      July 3, 2025
    • House advances Trump’s massive agenda bill after fiscal hawks cave

      July 3, 2025
    • Technological Innovation: How are Greece and the UK Leading the Way?

      July 3, 2025
    • Trump turns to Supreme Court in fight to oust Biden-era consumer safety officials

      July 3, 2025

    Categories

    • Business (8,368)
    • Investing (2,094)
    • Politics (15,923)
    • Stocks (3,187)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved