Arrival to reduce workforce by 50% to 800 employees

Arrival has previously announced its plan to refocus its resources on the development of its US Van product, which the company currently expects to start production in Charlotte in 2024, subject to raising additional capital. Following a detailed review of its operations and its markets, Arrival is now announcing immediate actions to further reduce its operating costs and to optimize the deployment of its current cash resources. This includes the difficult decision to reduce 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. Public road trials in the UK of the first certified and registered vans are ongoing. Arrival is also announcing the appointment of Teneo, a financial advisor, to assist the company in evaluating strategic alternatives, including opportunities to raise additional capital, optimize its balance sheet, and improve liquidity to support the execution of its business strategy. Further details of the company’s 2023 business plan, financial outlook and product milestones will be shared on the Full Year 2022 Business Update webcast planned for March 9th. As of 31 December 2022, Arrival had cash on hand of $205 million.