Fisker Automotive: Hybrid Car Maker Laying Off 75 Percent Of Workers

Fisker, an automotive company famous for a high-priced hybrid car Karma, is reportedly cutting 75 percent of its entire workforce.

The job cuts for Fisker amount to about 160 employees, which observers could mean the end of the luxury hybrid car maker. Officials at Fisker said the layoffs were necessary for the company as it tries to “maximize the value of Fisker’s core assets.”

After the 16o rank-and-file employees laid off by Fisker, 53 senior managers were kept on as the company looks for buyers for its assets. Fisker is government-owned, so the remaining executives are negotiating with the US Department of Energy to recoup what the company owes them.

Fisker executives declined to speak about any bankruptcy proceedings that could be occurring, but reportedly hired law firm Kirkland & Ellis last week to advise on a possible bankruptcy filing.

Fisker raised $1.2 billion from investors and took close to $200 million in government loans. The company said it has at least $30 million in cash and $15 million due after settling a claim with a bankrupt battery maker.

It’s not been an easy past few months for Fisker automotive. In October the company saw 300 of its Fisker Karma hybrids destroyed by Hurricane Sandy. Owners have also reported various problems with the luxury car, including random break-downs and reports that it catches on fire. The Karma plug-in hybrid came with a hefty $100,00 price tag, but Fisker automotive had not made any cars since July.

In March the founder of Fisker automotive, Henrik Fisker, abruptly resigned over “several major disagreements” with top management. The company was founded in 2007 and has the backing of venture firm Kleiner Perkins Caufield & Byers.

The employees were terminated on Friday at a morning meeting at Fisker automotive Anaheim, California, offices. The company also told the employees that it could not afford severance packages, a source said.