Fisker Expands Dealer Network but Warns of Possible Layoffs, Plant Closure

An email to employees said the company may have to implement layoffs in June if if it fails to restructure and attract investors.


While Fisker Inc. announced May 2 it added six more dealer partners in the U.S. and Guam, a leaked email to employees said the California-based EV startup faces potential layoffs and facility closures if it fails to secure financial stability.

Fisker said it added three new dealer partner locations in California -- one in Sacramento and two in Los Angeles County -- as well as in Kansas City, MO, and Forest City, PA, and a new distributor in Guam.

“We are excited to welcome our new dealer partners to the Fisker family and look forward to them opening for business," a Fisker spokesperson said in a statement.

The email, confirmed by several employees and obtained by Business Insider, sent earlier in the same week by John DiDonato -- the newly appointed chief restructuring officer -- serves as a "conditional notice" to employees, indicating job terminations could take effect June 28 if the company's attempts to restructure and attract new investment fall through. The email could have been sent in order to comply with the Worker Adjustment and Retraining Notification (WARN) Act, which requires a 60-day notice before major layoffs or closures.

"We are diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives," the email said, but there remains a significant risk these efforts may not be fruitful.

"Every decision is made following thorough analysis and careful consideration of the available options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory," A Fisker spokesperson said.

Fisker also recently reduced the price for its 2023 Ocean SUV models. The top-tier Ocean Extreme trim dropped $24,000 to a new price of $37,499. Similarly, the Ocean Ultra trim is now priced at $34,999, down from $52,999, and the Ocean Sport at $24,999, reduced from $38,999. The price cuts were effective as of March 29, and mirror reductions in Canada and Europe.

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