Arcimoto, maker of electric three-wheelers, cuts jobs due to low inventory

Arcimoto, the Eugene-based maker of three-wheeled electric vehicles, said it would use a combination of layoffs and furloughs to cut payroll bills by a third as its once-high-flying inventory nears zero.

Shares of the company, once one of Oregon’s most valuable, last traded at $1.39, down from $32 at the start of 2021.

“Today’s cost restructuring is a direct response to the conditions in the macroeconomic environment and the supply chain issues we face,” interim CEO Jesse Fittipaldi said in a statement. “We love our team, but these challenging steps are necessary to maximize our current resources, reduce operating expenses across the board, and drive increased value for our shareholders.”

Fittipaldi took over as CEO from company founder Mark Frohnmayer in August after Frohnmayer was arrested for drunk driving in an Arcimoto vehicle. Frohnmayer, a gaming software engineer who started Arcimoto to fight climate change, has been demoted to director of vision. He is the son of the late Oregon Attorney General Dave Frohnmayer.

Arcimoto sold shares to the public in 2017. Enthusiasm for electric vehicles boosted the company’s valuation to $1.25 billion in early 2021, making Frohnmayer one of the wealthiest Oregonians, with a participation of more than 100 million dollars.

A spokeswoman for Arcimoto declined to say how many workers the company plans to cut and furlough.

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