Skip to main content

Fisker Automotive gets slapped with lawsuit after laying off most of its workforce

fisker karma rendering redFisker Automotive surprised many of its employees last Friday morning by telling them to pack their things. The maker of the luxury plug-in hybrid laid off 75 percent of its workforce so quickly, in fact, that it is now facing a lawsuit.

In a statement, Fisker called the layoff “a necessary strategic step in our efforts to maximize the value of Fisker’s core assets.” The financially troubled carmaker is currently seeking a buyer, and having more cash around would presumably make it more attractive.

Recommended Videos

A lawsuit filed in a California US District Court argues that Fisker’s actions are in violation of the US Worker Adjustment Retraining Notification (WARN) Act, which requires employers to give 60 days notice before a mass layoff.

The employees, represented by Sven Etzelsberger, the named plaintiff, are also demanding 60 days of “wages, salary, bonuses, and other benefits.” Workers received no severance pay when they were laid off.

Fisker’s story has been nothing but bad news for the past few months. After a press battering over recalls, Karma production was shut down when battery supplier A123 Systems went bankrupt.

Needing cash to start production of the Atlantic, its proposed volume model, Fisker began looking for a suitor. Geely, the Chinese carmaker that already owns Volvo, appears interested, but no deal has gone down so far.

In the meantime, company founder and namesake Henrik Fisker resigned after a disagreement with other executives over business strategy.

With most of its workforce gone, it doesn’t look like Fisker intends to keep building cars. The small group of employees Fisker is retaining may just be around to manage a bankruptcy or court buyers.

Even if it does find a buyer, it’s unclear whether that buyer will be interested in the company as a whole, or just its cash, name and other assets.

Stephen Edelstein
Stephen is a freelance automotive journalist covering all things cars. He likes anything with four wheels, from classic cars…
Cheaper EVs ahead? GM and LG say new battery cells are the key
2025 Chevrolet Equinox EV front quarter view.

General Motors and LG Energy Solution have announced a new phase in their ongoing partnership: developing a new battery cell chemistry that could significantly lower the cost of electric vehicles. The joint effort centers on lithium manganese iron phosphate (LMFP) battery cells, a variation of lithium iron phosphate (LFP) that’s gaining popularity for being more affordable and less reliant on expensive materials like nickel and cobalt.

This is a big deal because battery costs are still the single largest expense in producing EVs. According to GM and industry experts, LMFP cells could help bring the cost of electric vehicles close to — or even on par with — gas-powered cars. The goal? Making EVs accessible to a broader range of drivers without sacrificing range or performance.

Read more
Waymo recalled 1,200 robotaxis following collisions with road barriers
Waymo Jaguar I-Pace

Waymo’s autonomous-car technology has made great advances over the years to the point where it’s now allowed to offer paid robotaxi rides in select locations in the U.S.

But the development of the technology is ongoing, and the robotaxi rides continue to gather valuable data for Waymo engineers to pore over as they further refine the driverless system to make it as reliable and efficient as possible. Which is why glitches will sometimes occur.

Read more
Apple CarPlay Ultra looks stunning in Aston Martin supercar debut
Apple CarPlay Ultra

Apple CarPlay Ultra is the next generation of the Cupertino, California-based firm's smartphone projection system for your car, and it's available in new vehicles in the US and Canada.

When we say "new cars", your options are very much limited to one brand... Aston Martin. So you'll need deep pockets if you want to experience CarPlay Ultra for yourself.

Read more