Image: Canoo
Days after furloughing dozens of its employees without pay, EV startup Canoo told the remainder of its staff they will be on a “mandatory unpaid break” through at least the end of the year, TechCrunch reported Friday. A company email seen by the outlet said employees would be locked out of Canoo’s systems by the end of Friday, with their benefits continuing through the end of this month.
The report follows Canoo’s announcement last week that it was idling its Oklahoma factories and furloughing employees while it worked “to finalize securing the capital necessary to move forward with its operations.” As TechCrunch notes, the company reported that it had only about $700,000 left in the bank last month.
Also on Friday, the company announced a 1-for-20 reverse stock split, effective December 24th. Canoo says the consolidation aims to keep its stock listed on the Nasdaq exchange and attract “a broader group of institutional and retail investors.”
Canoo was founded in 2017 to sell electric vans and trucks to adventure-seeking customers but has mostly only ever made vehicles for the US government. As The Verge’s Andrew Hawkins wrote last year, analysts have warned of its risk of insolvency as it’s teetered on the edge of running out of cash since 2022. Canoo has lost a steady stream of executives since then, including all of its founders and, more recently, its CFO and general counsel.