Electric Last Mile Solutions Inc. said it would lay off 50 employees, or about 24 percent of the total, as the effects of the sudden resignation of its leadership last month continue.

The plan to launch an electric vehicle to cut staff – “part of a general plan to focus the company on its core business and streamline costs” – was approved by the board last month, according to a paper in securities and stock exchanges. commission.

Dismissals were the first to be planned reported according to Reuters.

Crane’s Detroit Businessbranch Automotive newsinquiries from the company for further details.

The approval of the dismissal came days after an accountant at BDO LLP of Chicago resigned from an audit of his finances amid an investigation into the illegal purchase of shares by Electric Last Mile executives.

Co-founder Jason Luo and CEO Jim Taylor were forced to resign after the board found that they had acquired equity in the company at a discount, which led to its public offering, and were unable to disclose it. Along with this discovery, the company retold its financial statements by sending the price of its shares into a corkscrew.

Shares of Electric Last Mile on Tuesday rose slightly to $ 2.02 after the latest news, but still fell more than 80 percent from $ 10.19 when they went public on June 25.

The company, which was once valued at $ 1.4 billion and was considered a rising star in the EV space, has a a long road ahead recover from the crash, analysts say.

The Detroit-based company announced in September that it was launching production at its plant in Mishawaka, India, but production status is unclear.

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