Mullen looking at 20% job reduction, consolidations to curtail expenses

Mullen Automotive (NASDAQ:MULN) is looking to curtail its expenses by executing a 20% reduction in headcount, elimination of passenger vehicle programs, and facility consolidations.

The actions will result in an immediate reduction of $5.5M in monthly operating expenses, from $12.8M million to $7.3M.

Mullen (MULN) also continues to focus on overall near-term commercial revenue generation while streamlining operational efficiencies. The Southern California-based automotive company expects $75M in GAAP revenue over the next six months from sales pipeline and pilot programs. It plans to ramp up to $12.5M average per month in revenue during this time.

The company has conducted over 80 vehicle demos or pilots across various industries in the U.S. recently, resulting in important commercial sales progress. Revenue and associated gross margin growth is likely to further reduce cash requirements.

“As Bollinger focuses on B4 ramp up production volume and Mullen’s commercial vehicle sales momentum continues, I remain confident that through continued focus on revenue growth and expense reduction our near term cash flow will continue to improve,” said David Michery, CEO and chairman of Mullen Automotive.

Shares of Mullen Automotive (MULN) fell around 3% premarket on Monday.