In a sobering announcement, electric vehicle manufacturer Fisker has warned its employees that they could face possible layoffs in the next two months. The news comes as the company grapples with mounting financial challenges and seeks to find a way to address its cash flow issues.

According to three employees and an email viewed by Business Insider, Fisker issued a notice on Monday notifying staff of the potential layoffs. The email emphasized that the company is actively exploring various options to sustain its operations, including discussions with potential buyers and investors, as well as considering restructuring alternatives. However, it also acknowledged the possibility that these efforts may not be successful.

The memo, sent by the company's new restructuring officer, stated that impacted employees would face termination effective June 28 if Fisker fails to find a viable solution. The email, which followed the guidelines of the Worker Adjustment and Retraining Notification Act, explained that if employment is terminated, it would be permanent and the facility would close.

While the company's main headquarters is located in Manhattan Beach, California, Fisker also has other facilities in La Palma, California, as well as international sites in Munich and Vienna. Several employees confirmed that they had received the notice, indicating the potential scale of the layoffs.

Earlier on Monday, Fisker CEO Henrik Fisker announced that the company was making further reductions to its workforce. He also informed staff to expect a town hall meeting later in the week, according to employees and an additional email read by Business Insider. The company had previously announced a 15% workforce reduction in February and signaled further job cuts in April.

Last week, it was reported that Fisker was in discussions with four automakers regarding a potential buyout, raising hopes of a lifeline for the struggling company. However, last week's warning to investors about the possibility of seeking bankruptcy protection within 30 days unless additional liquidity is secured further underscores Fisker's financial woes. As of April 16, the company reported having only $54 million in cash equivalencies, which it believes may not be enough to meet its current obligations.

Fisker declined to comment on the recent developments, leaving employees and investors anxiously awaiting updates. The company's future hangs in the balance as it navigates through a critical period, seeking stability and a path forward in an increasingly competitive electric vehicle market.

Note: This article is based on information provided and sourced from Business Insider.