Arcimoto, the Eugene-based maker of three-wheeled electric vehicles, says it will use a combination of layoffs and furloughs to slash payroll expenses by one-third as its formerly high-flying stock speeds toward zero.
Shares of the company, once one of the most valuable in Oregon, last traded at $1.39, down from $32 in early 2021.
“Today’s cost restructuring is a direct response to the macroeconomic environment conditions and supply chain issues we are facing,” interim CEO Jesse Fittipaldi said in a statement. “We love our team, but these difficult steps are necessary in order to maximize our current resources, reduce operating expenses across the board, and generate increased value for our shareholders.”
Fittipaldi took over as CEO from company founder Mark Frohnmayer in August after Frohnmayer was arrested for drunken driving in an Arcimoto vehicle. Frohnmayer, a gaming-software engineer who started Arcimoto to combat climate change, was demoted to chief vision officer. He is the son of late Oregon Attorney General Dave Frohnmayer.
Arcimoto sold shares to the public in 2017. Excitement about electric vehicles drove the company’s valuation to $1.25 billion in early 2021, making Frohnmayer one of the wealthiest Oregonians, with a stake worth more than $100 million.
An Arcimoto spokeswoman declined to say how many workers the company planned to cut and furlough.