Ree Automotive announces cost reduction measures, focus on SDV technology

REE Automotive (REE) has implemented cost reductions across its business to streamline its cost structure and extend its expected financial runway. The company aims to focus its resources on SDV technology, improve its organizational structure and enhance operational efficiency in the near term, while supporting long term growth, by adjusting its workforce across the U.S., Israel and the U.K. The cost-saving measures are expected to lower operating expenses from a monthly average of approximately $6M to approximately $2.7M monthly average by year-end. Starting with these actions, the company aims to extend its cash runway beyond 12 months. The expected savings are offset, in part, by a one-time charge of approximately $2.1M related to the reduction-in-force plan. “We are taking immediate steps to stabilize operations in order to position REE to be a sustainable business in the long-term,” said Daniel Barel, CEO. “These actions, while difficult, are necessary to address the volatile global macro-economic conditions. They allow us to focus our resources on our strong technological core by maintaining our core R&D and engineering capabilities to ensure that we remain focused on innovation and value creation driven by our strong talents. We are becoming a leaner operation that will also focus on driving forward our licensing and partnership models for our SDV technology while maintaining our core production abilities for when the time is right. We are encouraged by the opportunities that we anticipate ahead and look forward to accelerating our software products while generating shareholder value.”