Embark Trucks, a self-driving truck company that went public in 2021 through a merger with a special purpose acquisition company, is cutting its workforce by 70% and closing two offices. And as CEO Alex Rodrigues said in an email to employees that his remaining 30% of employees will focus on downsizing, it’s possible the pain isn’t over yet.
The company said in a regulatory filing that about 230 employees were laid off on Friday. The cuts were announced on Friday morning, according to a source familiar with the plan. The workforce reductions are expected to occur in the first and second quarters.
“Unfortunately, after a thorough evaluation of all alternatives, we were unable to identify a path forward for the business in its current form,” Rodriguez wrote, later adding. Owns his 70% of the company and closes offices in SoCal and Houston. “
The layoffs come more than a month after bank advisory firm Evercore met with various AV firms to consider selling Embark’s assets, according to one source.
A sale of the asset appears to be the next business order, according to regulatory filings and Rodriguez emails filed Friday.
Embark’s board of directors on Wednesday approved a “process to research, consider and evaluate various potential strategic alternatives available to the company.” This includes alternative uses of the assets to commercialize the technology, additional sources of funding, and possible dissolution or liquidation of the company. assets.
“The board’s decision follows extensive evaluation by the company of alternative markets to commercialize its technology and an investigation into a potential sale of the company, which was conducted with the assistance of financial advisors. ” said Filling.
Embark Trucks was founded in 2016 by CEO Alex Rodrigues and CTO Brandon Moak and quickly caught the attention of investors. Rodrigues and Moak met while working on self-driving technology at the University of Waterloo and both earned degrees in mechatronic engineering.
By 2018, the startup had raised approximately $47 million. But what really brought in capital was his SPAC boom — at least for a short time. In 2021, we agreed to merge with Northern Genesis Acquisition Corp. II, a special purpose acquisition company, in a transaction valued at $5.2 billion.
Embark Trucks is currently short on capital, along with others trying to develop and commercialize autonomous vehicle technology. The company has a market capitalization of approximately $90 million. The company had about $190 million in cash and cash equivalents at the end of the third quarter, its most recent quarterly report.
Unfolding story…
