Canoo, the struggling EV startup, has furloughed 82 employees and idled its Oklahoma factory due to a critical need for funding. The company claims it is actively seeking emergency capital.
This announcement follows the recent resignation of board member James Chen and the departure of key executives, including the CFO and head lawyer. Canoo also faces multiple lawsuits from suppliers over alleged unpaid bills. The company has experienced a tumultuous year, marked by layoffs, furloughs, the closure of its Los Angeles headquarters, and the departure of its CTO and all founders. It has relied on loans from CEO Tony Aquila's venture firm to stay afloat.
While Canoo has provided electric vans to organizations like NASA, USPS, Walmart, and the Department of Defense for testing, it has yet to achieve large-scale manufacturing for commercial clients. The company expressed regret over the furloughs, especially during the holidays, but stated they were necessary. For more on struggling startups, see Apple Cancels iPhone Hardware Subscription.
Canoo's future hinges on securing new funding. The company's recent struggles mirror those of other EV startups, highlighting the challenges of competing in this rapidly evolving market. For related news, check out 9to5Mac Daily: Vision Pro, TikTok Ban, Apple Maps Updates and Rivian EVs Add Google Cast and YouTube.