EV maker Acrimoto looks to cut payroll costs by about one-third
Acrimoto Inc. announced Thursday a restructuring, with an aim of cutting its payroll expenses by 32% as part of its efforts to become profitable. The stock was halted for news until 1:30 p.m. Eastern. The Oregon-based maker of "incredibly fun" electric vehicles for "moving people and stuff," said the restructuring is expected to refocus operations on "immediate revenue-driving" programs including consumer sales, Deliverator fleet sales and rentals. The reduction in payroll costs will be from a combination of performance job cuts and temporary furloughs. "Today's cost restructuring is a direct response to the macroeconomic environment conditions and supply chain issues we are facing, requiring us to be more disciplined and laser focused on the areas of our business that are most critical to achieving profitability," said interim Chief Executive Jesse Fittipaldi. The company had 250 full-time employees as of Dec. 31, 2021. In the latest quarter that ended March 31, the company lost $12.95 million on revenue of $650,233, after a loss of $4.74 million on revenue of $1.39 million. The stock has plummeted 81.4% year to date, while the S&P 500 has lost 23.7%.
(END) Dow Jones Newswires
September 29, 2022 13:20 ET (17:20 GMT)
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