Nikola Corp. said on Friday it would lay off a total of 270 employees, as the electric-truck maker looks to cut costs and sharpen its focus on the North American marketplace.
Of the 270 employees impacted, 150 were supporting Nikola’s European operations and 120 were based at its sites in Phoenix and Coolidge, Ariz.
The decision would help Nikola reduce personnel-related cash spend by $50 million annually, the company said.
Annual cash usage for the company was expected to decrease to under $400 million by 2024, Nikola added.
“Nikola conducted a thorough review of its organizational structure and made the difficult but strategic decision to reduce its headcount,” the company said. It’s now “reorganizing workforce around new areas of focus and eliminating non-essential spend.”
The upheaval adds to recent turmoil after Nikola grappled in recent months with a delivery shortfall, executive turnover and a slumping stock price that has led to a possible stock delisting. On Thursday, founder Trevor Milton, who was convicted of securities fraud last year, criticized the company in social-media posts saying Nikola needed new leadership.
Shares in Nikola fell 15 percent to close Friday at $1.19.
Nikola’s financial troubles are not unique among several EV startups.
Bloomberg and Automotive News contributed to this report.
