Nikola Corp. is cutting 270 jobs as the maker of electric big rigs seeks to reduce costs and preserve cash.
The move will affect 150 employees supporting European operations and another 120 workers based mostly at sites in Arizona and California, the company said Friday in a statement. Nikola expects to save $50 million annually through the staff reduction, while the broader effort will result in as much as $400 million in lower annual cash usage by next year.
“Nikola conducted a thorough review of its organizational structure and made the difficult but strategic decision to reduce its headcount,” the company said. It’s now “reorganizing workforce around new areas of focus and eliminating non-essential spend.”
The upheaval adds to recent turmoil after Nikola grappled in recent months with a delivery shortfall, executive turnover and a slumping stock price that has led to a possible stock delisting. On Thursday, founder Trevor Milton, who was convicted of securities fraud last year, criticized the company in social-media posts saying Nikola needed new leadership.
Read More: Ousted Nikola Founder Urges Leadership Change at EV Maker
Nikola’s shares rose 3.3% as of 4:27 p.m. after regular trading Friday in New York.
