Canoo EV Maker Struggles, Furloughs Workers, Stock Tanks | GOEV |

Canoo EV Maker Struggles, Furloughs Workers, Stock Tanks
Canoo Workers Claim Furlough Affects 80-90% of Factory Staff, Not 23% as Announced.
Canoo Stock Reaches New All-Time Low as it Seeks Approval for Another Reverse Stock Split.
Electric vehicle startup Canoo notified on Thursday some employees at its Oklahoma factory of a 12-week furlough as part of what it called a ‘broader realignment of North American operations.

In an internal memo, the company’s General Counsel Hector Ruiz informed employees that the furlough period could be adjusted at the sole discretion of the company.
Kfor’s reporter Dylan Brown has spoken with several affected employees since Thursday, who told him that the percentage of affected staff is 80%/90 %, instead of the 23% announced by Canoo.
I had two more furloughed Canoo workers who reached out and said the same percentage that the worker we interviewed said, that 80% or 90% of their manufacturing staff was furloughed. Canoo says 23% of our factory workers.., the reporter wrote on X.

As of Sunday, the company had 76 job openings listed on LinkedIn, including three posted about three weeks ago for a Security Manager, an HSE Health, Safety and Environmental Manager, and a software engineer for over-the-air OTA updates.

Shares of Canoo dropped 27.3% on Friday to an all-time low of 55 cents following the announcement of the 12-week furlough, which will leave affected employees without regular pay.

Besides notifying employees that during your furlough period, they would not be actively working, and therefore, you will not receive your regular salary, Canoo informed that the health insurance would also terminate on the same day it notified the staff, October 31.

In a new statement, the EV maker said on Saturday it would extend healthcare benefits for furloughed employees from October 31 to November 30, responding to feedback from affected workers.

We are committed to supporting our impacted workers during this challenging time and will provide necessary resources to assist them, Canoo said.

Continuing our commitment to our impacted workers and in reflection on the feedback we received, we acknowledge the oversight in health care coverage during this furlough period. In quick response, our current leadership team is extending health coverage at the same level each furloughed employee had as of October 31, at no cost to them, in recognition of their service to the company, the company added.

Canoo confirmed it would be reaching out to all furloughed employees to communicate the update.

We are actively reaching out to each furloughed employee today to communicate this benefit and to ensure that their coverage remains active through November 30. This demonstrates our commitment to our furloughed employees and our ability to swiftly take corrective action, the company stated.

Speaking to Kfor, a worker said, It irritated me because they just had a town hall meeting or something in September where they said they are doing good and they have plans to get everything up and running.
Canoo Stock Reaches New All-Time Low as it Seeks Approval for Another Reverse Stock Split.
Shares of the electric vehicle startup Canoo reached a new all-time low at $0.74 on Thursday as the timeline for mass production remains unclear.

Additionally, Canoo withdrew in mid-September its revenue and operational guidance for this year while also retracting its forecasts on production run rates, vehicle manufacturing, and deliveries for 2024 and beyond. Since then, the stock dipped another 38%.
A stock that closes below $1 for thirty consecutive trading days risks delisting from the exchange. However, listed companies are generally granted a 180-day period to regain compliance, during which they must achieve a closing price of at least $1 for ten consecutive trading days.
Canoo shares closed below $1 on October 21 and are now 25% below Nasdaq’s threshold. Four weeks ago, the company filed a preliminary proxy statement with the U.S. Securities and Exchange Commission SEC outlining several proposals for its upcoming 2024 Annual Meeting.
The company is seeking shareholder approval for stock issuances, changes to its agreements with Yorkville Advisors, and a potential reverse stock split.

In March, the company executed a 1-for-23 reverse stock split to regain compliance.
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