As EV maker Canoo saw stocks make dramatic drops in trading over the past week, the company also quietly revealed more worker furloughs.
With a manufacturing plant in Oklahoma City where some workers were temporarily furloughed in November, the company, in a filing with the Securities Exchange Commission, indicated the latest were at its operations in Justin, Texas.
“On December 13, 2024, the Company announced that it was temporarily reducing its workforce by furloughing an additional 10 additional employees today resulting in a total of 50 non-essential employees over the last 90 days at its Justin, TX facility,” stated Canoo in the filing.
The company experienced large drops in stock values in the past week including a 29.17% decline on Dec. 10, a 23.53% decline on Dec. 11 and a 24.57% drop on Dec. 13.
“These furloughs, in addition to our previously disclosed furloughs at our Oklahoma City location and Employee Reorganization Plan, are part of the Company’s ongoing efforts to reduce costs and conserve cash resources while focusing on core operations,” continued Canoo in the filing.
The furloughs followed early November furloughs of 30 employees at the Oklahoma City plant. They represented 23% of the factory workers and were reportedly furloughed until after the holidays,, with an anticipated return in mid-January.
The company also announced in the filing of the resignation of James C. Chen from the company’s board of directors effective the end of December.
“Mr. Chen stated that his decision to resign from the Board was not due to any disagreement with the Company’s operations, policies or procedures, but in order to pursue other endeavors. The Company wishes Mr. Chen well in his future endeavors,” stated Canoo.
