Struggling Electric Car Startup Coda Automotive Lays Off 15% of Its Workforce
Death is Near, or Simply Bump in the Road?Mere hours after news of disappointing crash tests on their electric car, we learn that Coda Automotive has apparently laid off 15% of its employees, or 50 people representing "a substantial part of its sales and marketing staff, according to a source familiar with the company’s business". I don't know if this is an unfortunately coincidence or if this was timed to get all of the negative press out at the same time (rip off the band-aid quickly, so to speak), but it certainly doesn't look good, especially since sales have been anemic so far and no company can survive forever with more cash going out than coming in.
Forrest Beanum, Coda's senior vice-president of external affairs, issued this statement to PluginCars.com: “CODA has released approximately 50 employees or 15% of our workforce across all functions to streamline our operations and right-size the Company. The Company is taking this action to better position our business going forward. We remain committed to the continued development and distribution of our products."(source)
Let's hope that this last image doesn't become symbolic of more than just a crash test. I think Coda has a lot of potential, and if they just keep iterating and improving their product, they can do well. But it's a tough industry, and competition is strong, so it won't be easy...
Via Plug In Cars