As it seeks more funding and plans US expansion to take advantage of green energy subsidies, Arrival is cutting 800 jobs, about half of its remaining workforce.
The troubled electric vehicle maker said about 50% of the company's 1,600 strong global workforce would leave the company.
Arrival told investors that job cuts, and other measures to trim spending, would result in a halving of its operating costs to around $30 m 24 m per quarter.
The US-listed company is moving from focusing on the UK to developing a foothold in the US van market, with plans to start production in Charlotte, North Carolina next year, subject to raising additional capital. It hopes to benefit from Joe Biden's Inflation Reduction Act, a package of $369 billion in subsidies and tax credits for companies investing in electric vehicles and renewable energy technologies, as long as the products and parts they manufacture are made in the US.
In the UK, Arrival spent heavily on robot-heavy factories in Banbury and Bicester, but cut 800 jobs last July.
The latest job cuts are the first act of Igor Torgov, who joined the company last February and has now taken over the role of chief executive.
In November, Torgov replaced interim chief Peter Cuneo, who stepped down when founder Denis Sverdlov, a Russian telecoms billionaire, stepped aside.
Cuneo was responsible for the stock market listing that put $660 million into the company.
Start-ups across the sector have struggled in recent months, including Britishvolt, the electric vehicle battery maker that collapsed into administration this month after struggling to secure investment.
Financial advisory firm Teneo has been appointed by the company to assess options including raising more capital and improving its balance sheet.
Torgov said the actions support our mission to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the US market for commercial electric vehicles.
We are aware that these decisions, while necessary, will have a significant impact on a number of our colleagues. We are 100% committed to supporting our employees during this difficult process. The company was valued at more than $15 billion on the Nasdaq in New York at its peak, but the shares slumped during 2022 and the firm is now worth $250 million.
Arrival had cash on hand of $205 million at the end of last year, it said.
On the listing, the firm had said it planned to focus on vans and buses before moving into smaller passenger vehicles, with a focus on taxis but also the possibility of cars for consumers too.
Arrival was founded in West London in 2014 by Sverdlov, who sold telecoms firm and mobile phone maker Yota in 2013.