Because of the monetary difficulties during which it’s mired, Israeli auto-tech firm REE Automotive (Nasdaq: REE) is ready to fireside half of its workforce. On the finish of 2024, the corporate had 211 staff, together with 92 in Israel, down from 300 staff on the finish of 2022. 75% of the corporate’s staff work in R&D, whereas 20% are in administration and basic positions, and the rest in gross sales and advertising.
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REE, which is led by cofounder and CEO Daniel Barel, is growing software program outlined electrical automobiles platforms. The corporate launched its fourth-quarter and 2024 monetary outcomes late final month, and stunned the market by reporting that there was substantial doubt about its potential to proceed as a going concern over the subsequent 12 months, given the altering macroeconomic surroundings and the difficulty of tariffs.
Consequently, the corporate determined to quickly halt manufacturing and considerably cut back prices together with shedding staff. Barel stated on the time that the selections made replicate the corporate’s dedication to its long-term success.
The corporate now plans to scale back working bills by 60%, which amounted to $75.6 million in 2024 (after being lowered by 36% from 2023), and to this finish, they may cut back the variety of staff in Israel, the UK and the US by about 50% by the top of the yr, and streamline the administration construction. The corporate additionally believes that the brand new plan will enable it to proceed working in a lowered and environment friendly organizational construction, and estimates that the plan will enable REE to proceed to implement its marketing strategy and create worth for shareholders.
REE turned a public firm throughout the tech growth in 2021 by a SPAC merger and commenced buying and selling with a market cap of $3.1 billion. Since then, the corporate has misplaced most of its worth and is presently buying and selling at a market cap of simply $23 million. The corporate ended 2024 with income of $183,000, a gross lack of $3.5 million and web lack of $112 million, and on the finish of the yr, it had $72.3 million in money. In March, REE raised $27 million from current traders.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on June 4, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
