Electric Last Mile Solutions Inc., a Troy-based electric-vehicle startup that recently saw some of its top leaders depart, is planning layoffs.
The company reported in a regulatory filing last week that its board had approved a “reduction in force” of 50 employees, representing about 24% of its workforce, “as part of an overall plan to focus the company on its core business and streamline its cost structure.” The company said in the filing it could not estimate the costs associated with the plan.
News of the planned layoffs first was reported by Reuters.
In February, ELMS reported that executive chairman Jason Luo and CEO James Taylor had resigned from the company but would maintain consulting roles. The resignations followed an investigation that found the executives had purchased equity in the company “at substantial discounts to market offer” before ELMS went public.
Shauna McIntyre, a member of the company’s board of directors, was appointed interim CEO and president, and Brian Krzanich was tapped to serve as non-executive chairman of the board.
The leadership change was just one of many controversies and shakeups that recently have roiled EV startups.
ELMS went public last summer in a reverse merger with blank-check company Forum Merger III Corp., the combined value of which was pegged at $1.4 billion.
ELMS opened on its first day of trading in June at $11.10 per share and closed up nearly 13.5%. The stock closed at $2.02 per share Tuesday.
The startup — which is targeting commercial customers — last year launched production of its Urban Delivery van from its Mishawaka, Indiana, plant. It planned to start production of another vehicle, the Urban Utility vehicle, later this year.
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