Canoo lays off workers and shuts down its factory as it crunches for cash

EV startup Canoo is struggling he says It has laid off 82 workers and is keeping its Oklahoma factory idle while holding on to the capital it needs to survive. The company claims it is in “advanced discussions with various sources of capital” to raise emergency financing.

The announcement came days after board member James Chen resigned and about a month after the company. saw its chief financial officer and general counsel leave. Canoo is also facing multiple claims due to late payments from suppliers.

New graduations have been a tough year for the startup. The company suffered several layoffs and layoffs and closed the Los Angeles office that previously served as its headquarters. Chief Technology Officer of Canoo left in Augustand all the founders of the company are now gone. It happened in the meantime kept afloat by loans from a venture firm run by CEO Tony Aquila.

It’s unclear what Canoo was doing at its Oklahoma facility before it decided to shut down operations there. So far, the company has delivered electric vans to NASA, the USPS, Walmart and the Department of Defense for testing. But it failed in its wider ambitions to increase production for other commercial clients.

In an unsigned statement, Canoo said: “We are forced to lay off our employees, especially during the holidays, but at this point we have no other choice. We hope that we will be able to return them to work soon.” Aquila did not immediately respond to a request for comment.