Embark Trucks, the autonomous trucking company that went public in 2021 via a merger with a special purpose acquisition company, is cutting 70% of its workforce and shutting down two offices. And the pain may not be over as CEO Alex Rodrigues noted in an email to employees that the remaining 30% of workers will focus on winding down operations.
The company said in a regulatory filing that about 230 employees were laid off Friday. A source familiar with the plan said the cuts were announced Friday morning. The layoffs are expected to occur in the first and second quarters.
“Unfortunately, after thoroughly evaluating all alternatives, we have been unable to identify a path forward for the business in its current form, Rodrigues wrote, later adding “Today, having exhausted all alternatives, we are taking the incredibly difficult step of laying off ~70% of the company, and shutting down our SoCal and Houston offices.”
The layoffs come more than a month after banking advisory firm Evercore met with various AV companies to explore selling Embark’s assets, according to one source.