Arrival Slashes Global Workforce by Around 50%, Appoints new CEO

The former high-flying EV company Arrival is to reduce its global workforce by approximately 50% to 800 employees. When combined with other cost reductions in real estate and third-party spending, the company expects to halve the ongoing cash cost of operating the business to approximately $30 million per quarter.

Arrival also announced the appointment of Igor Torgov, former Arrival EVP of Digital, as CEO.

He replaces Peter Cuneo, the former Interim CEO.

The board unanimously voted in Torgov to deliver the planned restructuring of its business.

Torgov joined Arrival in February 2020 and has led the development of multiple divisions at Arrival including fintech, commercialisation, business systems, IT and digital products over the last three years.

Arrival previously announced plans to refocus its resources on the development of its US Van product, which it currently expects to start production in Charlotte, US, in 2024. However, this is subject to raising additional capital.

Public road trials in the UK of the first certified and registered vans are ongoing.

Denis Sverdlov, Founder and Chairman of Arrival, says: “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 new CEO, comments: “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 optimize 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.”

Arrival’s in-house technologies enable a unique approach to producing vehicles using rapidly-scalable, local Microfactories.