Fisker Is Closing Its California Headquarters: Report

Fisker Is Closing Its California Headquarters: Report

Troubled electric automaker Fisker has reportedly begun the process of closing its main headquarters in Manhattan Beach, California.

News of the impending closure was broken by Business Insider which received tips from three different Fisker sources that employees were asked to gather their belongings as part of a move to the company’s R&D facility in La Palma, California about 40 miles away. The potential closure comes just after a warning to employees of prospective layoffs and closure of its facility.

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Fisker’s Impending Trouble

Fisker’s new chief restructuring officer warned employees that they could be out of a job in June if the automaker can’t about-face its financial trajectory by then. It also warned that the company could close its facility—and that may be happening now.

Fisker has been undergoing significant financial woes for the majority of 2024, but the scope of the company’s troubles wasn’t public until the Wall Street Journal published an expose on EV startups that said Fisker had only “weeks” of cash on hand.

Popular tech YouTuber Marques Brownlee released a video two months later calling the Fisker Ocean the “worst car he’s ever reviewed,” sending the company spiraling even further as the internet watched with popcorn in hand. Fisker then warned that it could run out of cash if it didn’t get the help of another major automaker. Things were looking good as a potential deal with Nissan could be seen on the horizon. But that ultimately fell through and Fisker was delisted from the New York Stock Exchange.

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That brings us to now, in a world where Fisker has now provided compulsory warning to its employees that they could all be out of a job within the next two months:

As you know, Fisker Group Inc. (the “Company” or “Fisker”) has previously communicated that it will provide updates on significant developments that may impact Fisker’s workforce.

Over the past few months, Fisker’s leadership team has been pursuing all avenues to preserve the future of the business and its path forward. Fisker is diligently pursuing all options to address our operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives.

There is a possibility, however, that these efforts will not be successful. Should this possibility materialize, the Company has an obligation to provide “conditional notice” that employees—including yourself—will be terminated on June 28, 2024.

If the Company must terminate your employment in the future, the job loss will be permanent and the facility will be closed. The Company has no policy creating transfer, bumping, or reassignment rights for employees laid off from the business. If needed, we will provide you with additional separation information, including information regarding unemployment, COBRA benefits, and severance pay.

This notification does not mean the Company is shutting down or ceasing operations, and receiving this conditional notice does not necessarily mean you will be let go.

Fisker is operating under challenging circumstances and we are making every effort to work towards an outcome that facilitates new investment or other strategic solutions. We appreciate your dedication and support for one another during this challenging time. Thank you for your hard work and contributions to Fisker.

California’s Employment Development Department has not yet listed a Worker Adjustment and Retraining Notification (WARN) Act notice filing for Fisker.

Fisker has been slammed online recently for the closure of much of its service network and the cannibalization of pre-production cars to fix customer vehicles. It’s been rumored that the expansion of dealerships in recent weeks may be an attempt to help liquidate existing vehicle stock, especially as supplier Magna International has paused future Fisker Ocean production.

InsideEVs has reached out to Fisker for comment on the report, and we’ll update this post if we hear back. Fisker declined to comment to Business Insider

Fisker, the electric vehicle manufacturer, is reportedly closing its California headquarters, as stated in a recent report. This decision marks a significant development in the company’s operations and has raised questions about its future prospects.

The closure of Fisker’s California headquarters comes at a time when the company is facing challenges in the competitive electric vehicle market. With rivals such as Tesla and Rivian gaining traction and expanding their reach, Fisker has struggled to keep up with the pace of innovation and technological advancements.

According to sources familiar with the matter, Fisker’s California headquarters will be shuttered as part of a broader restructuring plan aimed at streamlining the company’s operations and cutting costs. The decision to close the headquarters is expected to result in layoffs and job losses for employees based at the facility.

This development has sparked concerns among investors and industry analysts about Fisker’s ability to remain competitive and stay afloat in the rapidly evolving electric vehicle market. With growing demand and interest in sustainable transportation solutions, the closure of Fisker’s headquarters raises doubts about the company’s ability to deliver on its promises and meet consumer expectations.

Fisker, known for its luxury electric vehicles and sleek designs, has struggled to secure a solid foothold in the market and has faced setbacks in production and delivery timelines. The closure of its California headquarters serves as a sobering reminder of the challenges that the company faces in an increasingly crowded and competitive industry.

As Fisker prepares to close its California headquarters, stakeholders and industry observers will be closely monitoring the company’s next steps and strategies. It remains to be seen how Fisker will pivot and adapt to changing market conditions, and whether the company will be able to regain its footing and emerge stronger from this setback.

In conclusion, the closure of Fisker’s California headquarters represents a turning point for the electric vehicle manufacturer and highlights the tough competition and challenges facing the industry. As Fisker navigates this period of transition, the company will need to demonstrate resilience, innovation, and strategic vision to thrive in a rapidly changing and demanding market.