Fisker Automotive Terminates 75% of Its Workers

by San Antonio Attorney

Struggling American automaker Fisker Automotive fired a majority of its rank-and-file workers in as a last resort to save money and avoid a bankruptcy filing.

The maker of hybrid automobiles received $200 million government backed loans and amassed $1.2 billion from investors. Fisker has around $30 million cash available, according to a person who knows about the company’s financial situation.

Fisker’s Karma plug-in hybrid immediately won awards for its design and received a seal of approval with celebrities, like Leonardo DiCaprio and Justin Bieber.

A source who attended the company meeting on Friday said that about 160 employees were terminated without severance payments.

This was confirmed by Fisker. Approximately 75 percent of its employees were let go and the company said it was a necessary move to make the most of Fisker’s assets.

The company’s mass layoffs resulted in a class-action lawsuit from furious former workers. A legal representative for the terminated workers said he is expecting that Fiskers will eventually file bankruptcy.

The departments that were hit by the layoffs included public relations, marketing and engineering. Fisker also hired Kirkland & Ellis law firm to receive counsel about the possibility of bankruptcy filing.

The source also said that several executives and managers were requested to remain in the company, mainly to pursue potential buyers for Fisker’s assets. The executives who stayed onboard continue to negotiate with the Department of Energy.

The class action against Fisker is one of many obstacles the company has encountered over the past month. Business founder Henrik Fisker unexpectedly resigned because of some major disputes with the highest ranking executives.

No car has been made by the company since July. Fisker has been looking for a financial backer for its Atlantic car.

 

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