ElectraMeccanica announces cost reduction initiatives, to cut 98 jobs

ElectraMeccanica Vehicles Corp. announced cost-reduction initiatives to further streamline the business in order to better consolidate onshore manufacturing capabilities and operations at its newly-commissioned Mesa, Arizona headquarters. These steps will accelerate the company’s path to profitability, by imposing a new level of fiscal discipline that preserves the ability to commercialize and scale operations while also eliminating excess costs, the company said. Since coming on board at ElectraMeccanica on December 5, 2022, new CEO/interim COO Susan Docherty has led an ongoing, top-to-bottom review of the Company’s existing operations footprint; product portfolio; product development; investment; capital allocation; and employee skills, distribution and efficiency. While this review is ongoing, the Company currently has elected to resize its workforce, lowering its headcount by 98 positions. This reduces the employee base outside Arizona by 57% and improves operating costs by approximately $10M annually. The company notes that its balance sheet and market demand for the SOLO remain healthy.