Following last year’s news it was exiting the UK to focus on US market growth, Arrival has now announced a major cost cutting exercise which will see its worldwide staff cut by half to 800 employees and the cash cost of running the business reduced to $30 million per quarter. Igor Torgov, former Arrival EVP of Digital, has been named CEO of the company and is charged with leading planned restructure and to support ”Arrival’s aim to develop a dramatically more efficient new method of designing and manufacturing electric vehicles,” according to a statement released by the company on 30 January 2023.
Arrival previously declared its intention to refocus its energies on the development of its US Van product, which it presently expects to begin manufacturing in Charlotte in 2024, subject to further finance being raised. Arrival has $205 million in cash on hand as of December 31, 2022, according to the press announcement. The company said it is hiring Teneo, a financial adviser, to help the firm evaluate strategic alternatives, such as potential to acquire additional capital, optimise its balance sheet, and boost liquidity to support the execution of its business plan.
More information on the company’s 2023 business strategy, financial forecast, and product milestones will be revealed during the Full Year 2022 Business Update Webinar, which is scheduled for 09 March.
Commenting on the appointment, Denis Sverdlov, Founder and Chairman of the Board said: “We are delighted that Igor will be stepping up as Chief Executive. His considerable experience executing business strategies in operations, manufacturing, supply chain, business systems and IT and his detailed knowledge of Arrival’s business made him the ideal candidate and will enable him to hit the ground running.”
Igor Torgov, Arrival’s new CEO, said, “Accepting this important role at a critical point in Arrival’s journey is a significant responsibility. Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change. To unlock these opportunities, we need to make difficult decisions and to take swift action. Following a detailed evaluation of Arrival and the wider EV market during the past two months, the leadership team and the Board have taken decisive action to ensure the most effective use of our current resources and optimize the efficiency of the business.”