ARVL - EV startup Arrival announces plan to cut global headcount in half

Arrival ( NASDAQ: ARVL ) became the latest company to announce a sizable headcount reduction on Monday.

According to a press release, the company is seeking to lay off half of its global staff in order to reduce operating costs. The cut equates to 800 total employees and will be coupled with “cost reductions in real estate and third-party spending” to reduce operating costs to $30M per quarter.

Additionally, the Luxembourg-based EV startup announced the appointment of a new CEO. Effective immediately, Igor Torgov, former Arrival EVP of Digital, will fill the top spot. Torgov replaces interim CEO Peter Cuneo, who himself replaced current board chair and company founder Denis Sverdlov as CEO in late November 2022.

“Accepting this important role at a critical point in Arrival’s journey is a significant responsibility. Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change,” Torgov commented. “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 company also announced it has retained the services of financial advisor Teneo, “to assist the company in evaluating strategic alternatives, including opportunities to raise additional capital, optimize its balance sheet, and improve liquidity to support the execution of its business strategy.” Production of US Vans is still on track to begin in 2024 subject to the company’s ability to raise additional capital, according to the statement.

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