Embark Trucks layoffs workers, investigates liquidation of driverless truck assets

Embark Vans, the autonomous truck firm that went public in 2021 by merging with a special-purpose acquisition firm, is slicing 70% of its workforce and shutting two workplaces. As CEO Alex Rodrigues identified, the ache might not be over. an email to employees that the remaining 30% of employees will concentrate on liquidation operations.

the corporate mentioned a editor filing About 230 workers have been laid off on Friday. A supply acquainted with the plan mentioned the cuts have been introduced Friday morning. Layoffs are anticipated to happen within the first and second quarters.

“Sadly, after completely contemplating all alternate options, we have been unable to determine a ahead path for the enterprise in its present kind,” Rodrigues wrote, later including, “Right this moment, after exhausting all alternate options, we’re taking the extremely troublesome step of layoff ~70% of the corporate. i and the closure of our SoCal and Houston workplaces.”

The layoffs come greater than a month after banking consulting agency Evercore mentioned with numerous AV firms to discover promoting Embark’s belongings, in line with a supply.

Based on a supply, the sale of belongings seems to be the following line of enterprise. editor filing Friday and posted Rodrigues’ e mail.

Embark’s board of administrators on Wednesday permitted “a course of to discover, evaluation and consider a spread of potential strategic alternate options the corporate may use” to commercialize its expertise, together with various makes use of of its belongings, extra sources of funding, and potential liquidation or liquidation. belongings.

“The board’s choice got here after an intensive evaluation of different markets the place the corporate will commercialize its expertise, in addition to analysis into a possible sale of the corporate with the assistance of a monetary advisor,” Dogu mentioned.

Embark Vans was based in 2016 by CEO Alex Rodrigues and CTO Brandon Moak and shortly caught the eye of traders. Rodrigues and Moak met whereas finding out driverless expertise on the College of Waterloo, the place they each accomplished levels in Mechatronics engineering.

By 2018, the enterprise had raised roughly $47 million. However it was the SPAC increase that actually introduced within the capital, no less than for a short while. In 2021, particular function acquisition firm Northern Genesis Acquisition Corp. Agreed to merge with II in a deal value $5.2 billion.

Right this moment, Embark Vans, like different firms attempting to develop and commercialize autonomous automobile expertise, is in need of capital. The corporate’s market capitalization is roughly $90 million; additionally end of third quarterIt had roughly $190 million in money and money equivalents, in line with the corporate’s most up-to-date quarterly report.

The story unfolds…