Electric vehicle maker Fisker has confirmed this week that it will cut around 160 jobs as the cash-strapped brand continues its search for a buyer.
The layoffs will bring the American company's workforce down to around 53, made up mostly of senior management and executives.
"Our efforts to secure a strategic alliance or partnership are continuing in earnest, but unfortunately we have reached a point where a significant reduction in our workforce has become necessary," Fisker said in a statement released Friday.
Reports overseas also suggest that the affected workers have initiated a lawsuit against the brand, arguing that they had been given no notice of the layoffs, and have not been paid severance or owing leave amounts.
The company has not been short on controversy, with federal loans keeping the business afloat in 2009, followed by three Karma models suffering powertrain fires.
Fisker's struggles continued when battery supplier A123 Systems filed for bankruptcy, leaving the carmaker unable to fulfill orders for its Karma plug-in hybrid since mid-2012.
Worse still, the company's founder Henrik Fisker resigned in March, following disagreements with CEO Tony Posawatz.
While the company continues its search for a buyer, it has engaged lawyers to advise on bankruptcy proceedings.