Fisker Automotive laid off 40 workers in Anaheim as the company tries to negotiate a new battery supply with a Chinese company that could restart production of the Karma hybrid, the company said Monday. Wanxiang, a Chinese company with its U.S. headquarters in Chicago, won an auction over the weekend for the assets of A123 Systems. The company was Fisker's sole battery supplier and went bankrupt in October. On Tuesday, Wanxiang will seek approval in bankruptcy court for its $256.6 million bid for A123 Systems. Fisker spokesman Roger Ormisher confirmed Monday that the automaker has shed half its employees since February – with about 40 employees cut from its Anaheim workforce over the past few weeks. The latest layoffs came after Fisker halted production of its $100,000 hybrid car due to a low supply of batteries. Fisker's ranks now stand at about 300 as the company seeks investment and partnerships to continue development of its second car, the Atlantic.