AM I NEXT? IS THE HANDWRITING ON THE WALL AT FISKER

Manhattan Beach, California-based Fisker, an electric vehicle manufacturer, has announced a restructuring and a 15% reduction in force.

More troubling is Fisker's SEC filing that contains a warning about its ability to continue as a going concern.

Contained within the SEC filing...

Substantial Doubt About Fisker’s Ability to Continue as a Going Concern

Fisker expects its capital expenditures and working capital requirements to decrease during 2024 and beyond as it enters the second year of Ocean production. The company’s business plan is highly dependent on the successful transition to its new Dealer Partner model in 2024. Furthermore, to the extent Fisker’s current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance that Fisker will be successful in these efforts. If the financing is not available, or if the terms of financing are less desirable than Fisker expects, the company may be forced to decrease its planned level of investment in product development, scale back its operations including further headcount reductions, and reduce production of the Fisker Ocean, which could have an adverse impact on the company’s business and financial prospects. As a result, the company expects to conclude there is substantial doubt about its ability to continue as a going concern when its annual financial statements for the year ended December 31, 2023, are filed with the SEC.

To address potential liquidity issues, Fisker is already taking action. The company is currently in discussions with an existing noteholder about potentially making an additional investment in the company. The use of proceeds, if a transaction is consummated, is expected to be for general corporate purposes, vehicle production and the ongoing transition to a dealer-focused sales model. In addition, Fisker intends to reduce its workforce by approximately 15%. Headcount reductions are predominantly related to the change in sales strategy from direct-to-consumer to a Dealer Partner model. In addition, the company is streamlining operations, including reducing its physical footprint and overall expenses.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT GETAROUND

San Francisco, California-based Getaround, an online car sharing or peer-to-peer carsharing service that connects drivers who need to reserve cars with car owners who share their cars in exchange for payment, has announced a 30% reduction in its American workforce.

CEO Sam Zaid noted...

Team

2023 was a challenging year for Getaround, but we’ve come out of it stronger. It was our first full year as a public company, and – as many companies have also experienced, both public and private – it was a year filled with tremendous challenges, and successes.

One area on which we continue to focus is the profitability of the company, keeping the long-term success of the business in mind. In that regard, we have made the difficult decision to further reduce costs and our workforce, effective immediately. This decision is part of our plan to better meet the global nature of the carsharing business and will affect approximately 30% of our North American staff.

The Reason for This Decision

It is never easy and always a difficult decision to part with our valued, amazing team members. The team at Getaround is like none other. This decision was especially difficult as we’ve worked so closely together to overcome the challenges the company faced through 2023.

Getaround is committed to achieving profitability and long-term business success while staying true to our mission, keeping the best interests of our community and stakeholders in mind. This decision is expected to reduce costs and further accelerate our path to profitability. We anticipate this reduction in our workforce will result in savings of approximately $7 million on an annualized run-rate basis.

The Road Ahead

While this is challenging news, we believe the future is bright for Getaround. We have made considerable progress over the past year, including:

Steady and meaningful improvements in revenue growth, unit profitability, and in our overall adjusted EBITDA profile

Launched new A.I. systems to improve our business, such as our TrustScore A.I.

Restructured to lower our fixed costs, and improved our operating efficiency

Deployed a powerful new global app that unifies and enables seamless trip coordination across the U.S. and Europe.

Consolidated and expanded our leadership in carsharing for the gig economy, enabling gig workers across the U.S. to rent cars to drive for services like Uber and DoorDash.

As the only carsharing marketplace that is truly global, connected, and delivering a digital user experience, and as the leader in gig carsharing, we believe Getaround is increasingly well positioned for the future.

How We Move Forward

I want to thank all those teammates who contributed to the progress we’ve made at Getaround. While we believe this is the right decision for the business, it does not diminish the challenge of letting talented colleagues go, or the gratitude we have for the dedication and professionalism of the team.

These decisions are difficult but in the best interest of Getaround and our long-term success. I take full responsibility for this decision, and I do apologize for the heartache and disruption it will cause.

Thank you again to our current and former teammates for their invaluable contributions to Getaround and our mission to empower people to carshare everywhere.

- Sam

“We own too many cars,” Zaid said. “We park them 22 to 23 hours a day, so there’s a vast amount of underutilization.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT SLPT GLOBAL PUMP GROUP / SLW AUTOMOTIVE

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

Sallisaw, Oklahoma-based SLPT Global Pump Group has announced that SLW Automotive, a manufacturer of automotive pump components and assemblies, will undergo a reduction in its workforce since the parent was acquired by China's Shenglong Automotive Powertrain System Co. Ltd., a leading company in the combustion engine and electric vehicle market.

The reduction in force will impact 192 employees, including 85 temporary workers.

According to a WARN notice filed with the Oklahoma Office of Workforce Development by Jeff Addison, SLPT's vice president and general manager for North America and Europe operations, “Due to a sale of a portion of SLW’s business in Sallisaw and the resulting corporate-wide reorganization, SLW will experience a reduction in its workforce and a number of employees of SLW will experience layoffs. This mass layoff is expected to be permanent,” he explained, adding that the overall number of affected workers would be 106 full-time employees and 85 temporary workers.

Addison admits the transition, no matter how seamless, comes with a certain amount of angst. 'It’s a change, and I don’t care who you are, including me, change is not easy,' he says. 'Our employees, we have to give them a lot of support and help them through this. We’re certainly having a lot of discussions with them, both formal and informal. We need to do all we can to help them.'"

"The sale of the Sallisaw property and building is a strategic action by SLW Automotive to focus the geographic footprint of the North America operations and grow the electric vehicle business. SLW Automotive recently acquired a design, development and manufacturing location in Warren, Mich., to be closer to strategic customers, says Leo Yulong, chairman of Shenglong Automotive Powertrain System Co."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?