Canoo, an electric vehicle startup, has furloughed 30 workers at its Oklahoma City assembly site for 12 weeks. The company says this is part of a broader realignment of its North American operations. In a statement, Canoo said, “This reduction is a continuation of our efforts to consolidate our U.S. workforce, which includes redistributing some of our tenured and skilled employees to our Oklahoma City and Texas facilities as part of our comprehensive plan and supply chain harmonization to prepare the company for the next phase of growth.”
The furloughed workers will be without paychecks for 12 weeks.
Their healthcare coverage was set to expire at the end of November, but Canoo later announced it would extend coverage for 30 days. Canoo has faced financial difficulties recently. In its October 30 SEC filing, the company revealed its cash and cash equivalents had been depleted to just $4.51 million.
It also reported a net loss of $117.6 million through the first half of 2024. The company borrowed $2.7 million from a fund associated with CEO Tony Aquila, following an earlier $1.2 million loan with 11% interest.
Canoo furloughs highlight operational challenges
Canoo faces multiple lawsuits, including claims from suppliers alleging missed payments. Canoo’s stock (GOEV) was down 7.49% from the opening bell on the day of the furlough announcement, trading at $0.40 per share. The company has undergone a major reorganization, relocating from Los Angeles to Texas and seeing the departure of key executives.
Despite these challenges, Canoo had made promises to Oklahoma, including creating 1,400 jobs and a fleet of 1,000 electric vehicles for the state. The Oklahoma Department of Commerce stated that its incentive programs are performance-based and that it is working to ensure Canoo meets all requirements. Furloughed workers have expressed concerns about the company’s promises and future.
Some claim no vehicles have been fully produced at the Oklahoma City plant during their tenure, citing issues with unfinished paint, incomplete assembly, and non-configured robotics. Canoo disputes these allegations. The 12-week furlough period would put workers back at the plant in late January 2025, but their future with the company remains uncertain as they await further communication and action from Canoo.
