Fisker Automotive, a federally backed maker of plug-in hybrid cars, laid off 75 percent of its workers Friday as it struggles to stay afloat and find new capital, according to press accounts.
“Our efforts to secure a strategic alliance or partnership are continuing in earnest, but unfortunately we have reached a point where a significant reduction in our workforce has become necessary,” the struggling California-based automaker said in a statement, according to Bloomberg.
The company said the cuts are a “strategic step in our efforts to maximize the value of Fisker’s core assets.”
The company recently hired bankruptcy lawyers in preparation for a possible filing.
Fisker drew $193 million of a $529 million Energy Department loan agreement reached in 2009 before the department halted payments in 2011.
Reuters, citing a source present at the Friday meeting where the layoffs were announced, reports that “Fisker asked 53 senior managers and executives to stay on board, primarily to pursue buyers for the company’s assets.”