EV marker Arrival to axe 800 jobs globally due to market volatility
UK-based electric vehicle (EV) maker Arrival is set to axe 800 jobs globally as it continues to feel the pinch from the ongoing economic volatility.
Approached by City PM, Arrival declined to comment on the number of UK workers that would be impacted as the company’s employees are scattered mainly across Britain, the US and the EU.
The group – which manufactures vehicles for the likes of UPS, FirstGroup and Uber – justified the decision as part of “a realignment of the organisation” that includes a 30 per cent spending reduction.
“The proposals are the right step at this time to insure the long-term success of the business and enable it to service this demand in the face of a unique economic environment that is seeing both new players and traditional OEMs facing supply chain issues, an ongoing pandemic, geopolitical tensions and rising inflation,” the company said in a statement.
The announcement follows a recent $225m loss forecast, with a capital spending of up to $420m.
Founded in 2015 by Russian billionaire and former Putin’s minister Denis Sverdlov, Arrival made the headlines last spring when it listed on the Nasdaq technology exchange with a $19bn valuation. Now the business is worth less than $1bn.
The chief executive, the company said, was not affected by the raft of sanctions that hit Putin’s cronies following the Russian invasion of Ukraine.