US-based electric truck manufacturer, Nikola, has made the decision to lay off 270 employees, which accounts for approximately 23% of its workforce. The company also plans to focus solely on its electric truck efforts in North America as a means of preserving cash flow. Furthermore, around 150 team members, who were previously supporting the company’s European programs, will be affected by these lay-offs, along with 120 employees based in Phoenix and Coolidge, Arizona.
After implementing these personnel reductions, Nikola will have around 900 employees remaining. This strategic move is anticipated to decrease personnel-related costs by over $50 million each year.
“Our battery-electric truck is performing admirably for our customers, and the hydrogen fuel cell electric truck will commence production in a matter of weeks. We are taking proactive measures to manage costs and reduce expenses. This includes streamlining operations, including our organizational structure, to ensure the efficient execution of our objectives,” stated CEO Michael Lohscheller.
Meanwhile, Grubhub, a US-based online food ordering company, has chosen to lay off approximately 15% of its workforce, amounting to nearly 400 employees. This decision was made in order to maintain competitiveness within the market. The company cited higher rates of operating and employee costs as the rationale behind these lay-offs.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
