Due to the financial difficulties in which it is mired, Israeli auto-tech company REE Automotive (Nasdaq: REE) is set to fire half of its workforce. At the end of 2024, the company had 211 employees, including 92 in Israel, down from 300 employees at the end of 2022. 75% of the company’s employees work in R&D, while 20% are in administration and general positions, and the remainder in sales and marketing.
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REE, which is led by cofounder and CEO Daniel Barel, is developing software defined electric vehicles platforms. The company released its fourth-quarter and 2024 financial results late last month, and surprised the market by reporting that there was substantial doubt about its ability to continue as a going concern over the next 12 months, given the changing macroeconomic environment and the issue of tariffs.
Consequently, the company decided to temporarily halt production and significantly reduce costs including laying off employees. Barel said at the time that the decisions made reflect the company’s commitment to its long-term success.
The company now plans to reduce operating expenses by 60%, which amounted to $75.6 million in 2024 (after being reduced by 36% from 2023), and to this end, they will reduce the number of employees in Israel, the UK and the US by about 50% by the end of the year, and streamline the management structure. The company also believes that the new plan will allow it to continue operating in a reduced and efficient organizational structure, and estimates that the plan will allow REE to continue to implement its business plan and create value for shareholders.
REE became a public company during the tech boom in 2021 through a SPAC merger and began trading with a market cap of $3.1 billion. Since then, the company has lost most of its value and is currently trading at a market cap of just $23 million. The company ended 2024 with revenue of $183,000, a gross loss of $3.5 million and net loss of $112 million, and at the end of the year, it had $72.3 million in cash. In March, REE raised $27 million from existing investors.
Published by Globes, Israel business news – en.globes.co.il – on June 4, 2025.
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