Summary
- Canoo has placed its remaining employees on unpaid leave until the end of the year
- The startup previously furloughed 82 employees and closed an assembly facility in Oklahoma
- Canoo has lost many executives and changed direction under CEO Tony Aquila
- The company has received orders for electric vans from Walmart and Zeeba
- Canoo has struggled to ramp up vehicle production and convert interest into revenue
Article
Electric vehicle startup Canoo has recently placed its remaining employees on a “mandatory unpaid break” until at least the end of the year, according to a report by TechCrunch. An email sent to employees stated that they would be locked out of Canoo’s systems starting the following day, with benefits continuing through December. This move comes shortly after Canoo announced furloughs for 82 employees and the idling of an assembly facility in Oklahoma due to funding issues.
The Oklahoma facility was not yet fully operational, as Canoo had only delivered limited numbers of demonstration vehicles, including some for the U.S. Postal Service. The startup had previously closed its Los Angeles headquarters and shifted its operations to Justin, Texas, where a corporate office has been maintained since CEO Tony Aquila took over. The departure of key executives, including the CTO, CFO, and general counsel, has left the original team that launched Canoo in 2017 mostly absent.
Under CEO Aquila’s leadership, Canoo has shifted its focus from selling van-like EVs on a subscription basis to commercial vehicles. This change in direction has attracted interest from major companies like Walmart and Zeeba, who have placed substantial orders for electric vans from Canoo in 2022. While Canoo has also supplied vans to NASA and a prototype electric pickup truck to the U.S. Army, the company has struggled to translate the excitement around its products into revenue through increased vehicle production.
Despite some high-profile partnerships and orders, Canoo has faced challenges in scaling up production and generating consistent revenue. The loss of key executives and the shifting strategic direction under CEO Tony Aquila have marked a new chapter for the startup, with a focus on commercial vehicles and partnerships with major companies. The decision to place employees on unpaid leave and the closure of facilities in Oklahoma reflect ongoing financial difficulties for Canoo, as it seeks to navigate a challenging landscape in the electric vehicle market.
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