Nikola says the job cuts alone will save it more than $50 million annually
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by Brad Anderson
3 hours ago
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Nikola has announced that it will reduce its headcount by 270 members as it looks to slash costs and optimize its business.
As part of an effort to reduce its cash spend while streamlining operations, approximately 150 employees working across multiple sites on the truck manufacturer’s European programs will be shown the door. The other 120 employees will be axed from Nikola’s Arizona sites in Phoenix and Coolidge. Select employees from Nikola’s facility in Cypress, California will also lose their jobs.
Nikola says reducing its headcount will reduce personnel-related cash spend by more than $50 million annually and leave it with 900 employees.
Further efforts are being made to optimize operations. Nikola will concentrate more heavily on the North American market and also plans to sell its joint venture share to Iveco Group. The company is also going to better localize its supply chain as a way to reduce the material cost of its trucks. It will do this by transitioning battery manufacturing from Cypress, California to the Nikola plant in Coolidge, Arizona. The Coolidge site will also handle the assembly of Bosch fuel cell power modules.
Read: More Bad News For Nikola As EV Truck Maker Receives Delisting Notice From Nasdaq
In addition, the truck start-up that’s faced its fair share of controversy has established a strategic partnership with Volterra for its HYLA hydrogen energy infrastructure business that will lead to the creation of 50 hydrogen stations over the next five years. Nikola is also gearing up to launch its Class 8 hydrogen truck in the third quarter having already secured 178 orders from 14 customers.
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“Nikola has initiated a more focused business plan this quarter, concentrating on North America, zero-emission truck production, and our HYLA hydrogen business,” chief executive Michael Lohscheller said. “Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks. We are proactively managing costs and reducing expenses. We are streamlining operations, including our organizational structure, to efficiently execute our objectives.”
