British electric van manufacturer Arrival has announced plans to refocus its resources and spending onto expansion in the US market, including plans to cut its global workforce by about 50% to 800 total employees.
The company also announced the appointment of Igor Torgov, former Arrival EVP of digital, as its CEO. The company’s board reportedly elected Torgov with a unanimous vote ahead of its planned restructure.
Igor Torgov’s appointment took effect yesterday [January 30 2023], with him joining Arrival in February 2020.
The company expects to begin production of its larger US model in Charlotte, North Carolina in 2024, subject to further funding.
To reduce its outgoing costs, the company also plans to make cuts in its real estate and third-party spending, with expectations that it will have ongoing operating costs of approximately US$30m (£24.3m) per quarter.
Arrival also announced its appointment of Teneo, a financial advisor, to support it in ‘evaluating strategic alternatives, including opportunities to raise additional capital’ to strengthen its overall business strategy.
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.
“The board and I would like to thank Peter for his contribution as interim CEO and his help in facilitating the plans we have announced today.”
Igor Torgov, Arrival’s incoming 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 optimise the efficiency of the business.
“The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles.
“We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues.
“We are 100% committed to supporting our employees during this difficult process.”
As of 31 December 2022, Arrival reported it had cash on hand of US$205m (£166.3m).