Workhorse Group taking steps to ‘agressively cut costs’

As the Company recently disclosed, it is negotiating with financing sources for a transaction that would provide a financial runway for the business to execute on its plans. The Company intends to consummate such a transaction in the near future. Workhorse is also taking steps to aggressively cut costs across the organization to ensure it can deliver for its customers and stakeholders. These steps include: In the process of completing a reduction in force pursuant to which approximately 20% of the total workforce, excluding direct labor, was terminated in addition to Aero reductions as well. The Company does not expect to incur material costs in connection with the RIF. Each executive officer agreed to defer payment of 20% of their cash compensation for at least the next three months. Transitioning the Aero business from a design and manufacturing drone business to DaaS model. This transition has resulted in, among other things, stopping production and development of both drone product lines and the termination of employees who performed the related work.