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CEO stirs controversy after allegedly pocketing millions for private jet amid employee furloughs: 'Should not be legal'

"Failing his way into millions of dollars at the cost of other people's jobs."

"Failing his way into millions of dollars at the cost of other people's jobs."

Photo Credit: iStock

An electric vehicle startup is in hot water after giving employees the Scrooge treatment.

A post on the subreddit r/antiwork called out automaker Canoo for its callous attitude toward staff while it footed the bill for its CEO's private jet. 

A December email, shared by EV, informed 82 employees they were being placed on a "mandatory unpaid break" and stated, "Please take this time to have a restful and enjoyable holiday season with your family." 

The original poster commented, "I'm sure Christmas is really restful and enjoyable when you have zero income and the bills are due."

Engadget noted the company had furloughed 30 employees in the fall, and Oklahoma City's News 9 reported it wasn't paying suppliers. 

Despite the mounting debt, CEO Tony Aquila was reimbursed millions of dollars for his air-polluting private jet, according to TechCrunch — more than double the company's revenue.

"Yet another CEO is failing his way into millions of dollars at the cost of other people's jobs," the post said.

"This should not be legal," one commenter wrote.

"The more I read about Tony Aquila, the shadier this whole thing seems," added the original poster, who explained that AFV Management Advisors, another entity owned by Aquila, loaned money to Canoo, as EV detailed. "This means that when Canoo goes bankrupt, AFV Management Advisors gets paid out first."

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It appears the Redditors' suspicions weren't entirely unfounded.

A month later, Canoo employees learned their "mandatory unpaid break" would be permanent. The company announced it was ceasing operations and filing for Chapter 7 bankruptcy.

As Canoo's engineers told News 9, their electric vehicles were drivable and free from issues, which makes the company's mismanagement all the more frustrating. Not only do EVs save on gas and maintenance costs, but they also help reduce heat-trapping pollution.

Several Redditors voiced disappointment that Canoo's failure would set back the industry.

"I had high hopes for Canoo because of their van concept," one said.

"And it was such a cool idea for a van too," the original poster agreed, lamenting that other EV startups would "have a much harder time making a go of it just because Aquila treated Canoo like his own piggy bank."

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