Karma Automotive is laying off 60 workers at its Irvine, Calif., headquarters, just three months after cutting 200 workers, according to documents filed with the California Employment Development Department.
The Chinese-backed California-based startup filed the notice under the Worker Adjustment and Retraining Notification Act, which requires employers to alert the state of mass layoffs. The WARN report was updated Wednesday. The Orange County Register was first to report the layoffs.
A Karma spokesperson confirmed the layoffs and said a majority would be at the headquarters, with a significantly smaller number being impacted at its Moreno Valley, Calif. assembly plant. Karma didn't provide details on its total employee count, but did say "adjustments" will be made at its Irvine headquarters, Moreno Valley assembly plant and its Detroit Technical Center in Troy, Mich.
Here's the complete statement from spokesman Dave Barthmuss.
As Karma evolves beyond its initial birth as car company and emerges as a technology-focused innovator, there is a continuous need to adjust the size and skillset of its workforce to fulfill the task at hand. The company has therefore determined it necessary to realign resources in some business functions so it can grow its capabilities beyond just creating and selling luxury electric vehicles.
As Karma builds partnerships with other OEMs and start-ups to speed product development, we must staff appropriately to fully leverage and realize the kinds of efficiencies partnerships and collaborations can provide. The result of that decision is some adjustments at Karma’s Global Headquarters in Irvine, Calif.; the Karma Innovation and Customization Center in Moreno Valley, Calif.; and our Detroit Technical Center in Troy, Mich. Although clearly regrettable for the individuals involved, this action is part of the natural trajectory of a start-up enterprise and underlines Karma’s commitment to remain lean, nimble and focused on building partnerships to encourage success in a changing and hugely competitive marketplace.
The company continues to actively recruit, with emphasis on technology innovation, in functions across the company as we focus on retail deliveries of our current products and developing new vehicle platforms, technologies and business partnerships.
The layoff notice comes just a month after several executive hires at the company, including a chief revenue officer, a new vice president of strategy and vehicle line engineering and a head of supply chain. Karma does have a handful of jobs posted on its website, including 11 positions at its Irvine headquarters and two spots at the Moreno Valley plant.
Karma Automotive launched out of the remnants of Fisker Automotive, the startup led by Henrik Fisker that ended in bankruptcy in 2013. China’s Wanxiang Group purchased what was left of Fisker in 2014 and Karma Automotive was born.
It hasn't been the easiest of roads for the company. Karma's first effort, known as the Revero, wasn’t received warmly. The Revero GT, which has been described as the first fully conceived product under the Karma name, followed with better reviews. The 2020 Revero GT is being delivered to retail customers, according to Karma.
Karma unveiled in November the Revero GTS and a new electric concept car called the SC2, just weeks after it laid off about 200 workers following a restructuring. Production of the GTS is slated for later this year.
The SC2 is a big part of Karma's restructuring and plan to reinvent itself as a technology and design incubator that supplies other automakers. The company’s new business strategy is to open its engineering, design, customization and manufacturing resources to other companies. The GTS and SC2 were meant to show automakers what it is capable of.