Following a review of its operations and its markets, EV maker Arrival is taking actions to further reduce its operating costs. This includes reducing its global workforce by approximately 50% to 800 employees.
When combined with other cost reductions in real estate and third-party spending, the company expects to halve the ongoing cash cost of operating the business to approximately $30 million per quarter.
Arrival has previously announced its plan to refocus its resources on the development of its U.S. Van product, which the company currently expects to start production in Charlotte in 2024, subject to raising additional capital.
Public road trials in the UK of the first certified and registered vans are ongoing.
Arrival today also appointed Igor Torgov, former Arrival EVP of Digital, as CEO. The board unanimously voted in favor of the leadership change to effect the planned restructuring of its business.
Torgov’s appointment will take effect from today, January 30, 2023. He joined Arrival in February 2020 and has led the development of multiple divisions at Arrival including Fintech, Commercialization, Business Systems, IT and Digital products over the last nearly three years. Prior to Arrival, he held numerous COO, CEO, and leadership positions at Atol, Bitfury, Yota, Columbus IT and Microsoft.
“Accepting this important role at a critical point in Arrival’s journey is a significant responsibility. Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change. To unlock these opportunities, we need to make difficult decisions and to take swift action. Following a detailed evaluation of Arrival and the wider EV market during the past two months, the leadership team and the Board have taken decisive action to ensure the most effective use of our current resources and optimize the efficiency of the business," said Torgov. "The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles. We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process.”