Fisker Automotive, a federally backed maker of plug-in hybrid cars, laid off 75 percent of its workers Friday as it struggles to stay afloat and find new capital, according to press accounts.

“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,” the struggling California-based automaker said in a statement, according to Bloomberg.

The company said the cuts are a “strategic step in our efforts to maximize the value of Fisker’s core assets.”

The company recently hired bankruptcy lawyers in preparation for a possible filing.