Electric vehicle startup Arrival has undergone a major shakeup, appointing a new CEO and announcing layoffs of 50% of its staff.
Arrival has a deal with UPS to provide 10,000 electric delivery vans through 2024. Despite the high-profile contract, the company has struggled financially and is now announcing its second round of layoffs in a year.
Following a detailed review of its operations and its markets, Arrival is now announcing immediate actions to further reduce its operating costs and to optimize the deployment of its current cash resources. This includes the difficult decision to reduce its global workforce by approximately 50% to 800 employees. When combined with other cost reductions in real estate and third-party spending, the company expects to halve the ongoing cash cost of operating the business to approximately $30 million per quarter.
Simultaneously, the company also announced a new CEO, Igor Torgov. Torgov has a long history in the tech industry, with stints at Microsoft, Bitfury, Columbus A/S, and Yota. Most recently, before serving as Arrival’s EVP of Digital, Torgov served as CEO of Atol.
“Accepting this important role at a critical point in Arrival’s journey is a significant responsibility,” said Torgov. “Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change. To unlock these opportunities, we need to make difficult decisions and to take swift action. Following a detailed evaluation of Arrival and the wider EV market during the past two months, the leadership team and the Board have taken decisive action to ensure the most effective use of our current resources and optimize the efficiency of the business. The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles. We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process.”