Mullen Automotive says it's cutting 20% of its workforce

MW Mullen Automotive says it's cutting 20% of its workforce

By Ciara Linnane

Mullen is planning to reduce monthly operating costs by $5.5 million

Mullen Automotive Inc., a maker of commercial electric vehicles whose once-surging stock has now been almost entirely wiped out, on Monday announced cost cuts that include a 20% reduction in head count.

The Brea, Calif.-based company (MULN) had 326 employees as of end-Sept. 2023, according to FactSet data.

Mullen Automotive stock fell 3% early Monday. The stock has fallen 99.8% in the year to date, while the S&P 500 SPX SPX has gained 20.6%.

The company plans to reduce monthly operating costs by $5.5 million to $7.3 million, by cutting jobs, eliminating five passenger vehicle programs and consolidating facilities by terminating property leases and sub-leasing non-critical property.

"Mullen continues to focus on overall near term commercial revenue generation while streamlining operational efficiencies," the company said in a statement.

The company is expecting to generate $75 million of GAAP revenue over the next six months, after conducting more than 80 vehicle demos or pilots across various industries in the U.S. over the last few months.

"As Bollinger focuses on B4 ramp up production volume and Mullen's commercial vehicle sales momentum continues, I remain confident that through continued focus on revenue growth and expense reduction our near term cash flow will continue to improve," said Chief Executive David Michery in prepared remarks.

In May, Mullen said it had received a $100 million financing commitment from a family office and sold up to an additional $50 million of convertible debt to family offices and high-net-worth investors. That would give it enough cash to run operations for more than a year, the company said at the time.

-Ciara Linnane

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October 07, 2024 06:53 ET (10:53 GMT)

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