All of Canoo’s employees are reportedly on a ‘mandatory unpaid break’

Days after furloughing dozens of employees, electric vehicle startup Canoo told its remaining employees they will be on “mandatory unpaid leave” until at least the end of the year. TechCrunch report Friday. A company email seen by the outlet said employees will be locked out of Canoo’s systems through the end of Friday, but their benefits will continue until the end of the month.

The report follows Kanu’s announcement Last week, the company was idling its Oklahoma factory and furloughing employees while it worked to “finally secure the funding needed to advance its operations.” as TechCrunch Notably, the company reported having only about $700,000 in the bank last month.

Also on Friday, the company declare A 20-for-1 reverse stock split, effective December 24. Kanu said the merger was aimed at keeping its shares listed on the Nasdaq exchange and attracting “a broader range of institutional and retail investors.”

Canoo was founded in 2017 to sell electric vans and trucks to customers seeking adventure, but mostly only makes vehicles for the U.S. government. as edgeAndrew Hawkins Written last yearAnalysts have warned that the company has been on the verge of running out of cash since 2022 and is therefore at risk of bankruptcy. all its founders Recently, its Chief Financial Officer and General Counsel.