Taiga Motors Cuts 8% Of Its Workforce
Taiga (TSE: TAIG) confirmed “temporary” layoffs affecting 31 employees, or about 8% of its workforce, with hopes of swift recall though the layoff may extend up to six months.
“Last month’s temporary reduction in workforce is part of cost reduction objectives as Taiga aims for profitability, following a year of rapid production growth,” the company spokesperson said in an email, as reported by The Canadian Press. Radio-Canada first reported the layoffs, citing an internal memo.
On Monday, the company emphasized its production achievements — having built “more than 1,000 vehicles” in 2023 versus 133 the year before.
The layoffs raise questions about the Montreal-based company’s liquidity. Its cash reserves decreased from $22.8 million at the end of 2022 to $5.8 million by September 30, despite securing emergency aid totaling $40.15 million from Investissement Québec and Northern Private Capital, with $15 million contributed by Quebec’s government financial arm. In September, Taiga also entered into a $15 million term loan agreement with Export Development Canada.
Information for this story was found via The Canadian Press, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
