50% staff cuts for Arrival
Cuts in staff come as new CEO is announced for electric vehicle manufacturer
Electric bus developer, Arrival has appointed a new CEO and announced a 50% cut to its global workforce.
Igor Torgov, former Arrival EVP of Digital, has been appointed as CEO. Former CEO, Denis Sverdlov, announced he was to step down from the role in November 2022.
As part of plans to reduce operating costs and optimise the deployment of its current cash resources, the business has taken the decision to reduce its global workforce by approximately 50% to 800 employees. The change is expected to halve the ongoing cash cost of operating the business to approximately $30m per quarter.
Last year, the business announced it was to halt development of its Bus project to focus on producing its Van. It currently expects to start production of the electric van at its site in Charlotte, US in 2024, subject to raising capital.
As of 31 December 2022, Arrival had cash on hand of $205 million.
Denis Sverdlov, Founder and Chairman of the Board, commented on the appointment of the new CEO: “We are delighted that Igor will be stepping up as Chief Executive. His considerable experience executing business strategies in operations, manufacturing, supply chain, business systems and IT and his detailed knowledge of Arrival’s business made him the ideal candidate and will enable him to hit the ground running. The Board and I would like to thank Peter for his contribution as Interim CEO and his help in facilitating the plans we have announced today.”