Electric vehicle startup Canoo, after laying off many of its employees without pay, informed the rest of its staff that they will be on a mandatory unpaid break at least until the end of the year, according to TechCrunch. The company also told employees they will be locked out of its systems by the end of Friday, though their benefits will continue through this month.
This announcement follows Canoo’s decision to halt production at its Oklahoma factories and furlough workers while it tries to secure enough funding to keep operations going. Last month, Canoo reported having only about $700,000 in the bank.
On the same day, Canoo also revealed it would be doing a 1-for-20 reverse stock split, effective December 24, in an effort to maintain its listing on the Nasdaq and attract more investors.
Canoo was founded in 2017 with the goal of selling electric vans and trucks to adventurous customers, but so far, it has mainly produced vehicles for the US government.
The company has faced ongoing financial struggles, and experts have warned about its potential insolvency since 2022. Over the years, it has seen a number of key executives leave, including all of its founders and most recently, its CFO and general counsel.