Redwood Materials has reduced its workforce by approximately 135 employees, representing about 10% of its staff, as the battery recycling and materials company reorganizes to support its expanding energy storage operations. This latest round of cuts follows a 5% reduction made five months ago and comes three months after the company secured $425 million in funding, which raised its valuation to over $6 billion.
The move reflects broader challenges in the battery sector. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy, and several battery manufacturers have restructured or ceased operations amid slower-than-anticipated adoption of electric vehicles in the U.S.
In an email to remaining staff, founder and CEO JB Straubel emphasized that the layoffs do not indicate financial distress. Straubel noted that Redwood’s materials business is “well on its way to profitability” and highlighted the company’s leadership in the U.S. battery recycling market. He also pointed to growing momentum in their energy storage segment, citing recent agreements to supply recycled batteries to Crusoe AI and Rivian for on-site power applications.
Straubel explained that certain teams had grown faster than necessary to meet the company’s strategic objectives. As a result, reductions were made across multiple divisions, including engineering and operations, to ensure a more focused and efficient organization. He expressed confidence that a streamlined team would successfully deliver on critical projects and adapt to market changes that have challenged many competitors.
The CEO affirmed his optimism about Redwood’s future, describing the company as the “strongest it’s ever been” and underscoring its goal to become the world’s most integrated and cost-effective critical materials and energy storage business. He reiterated that the enterprise is self-sustaining and positioned to increase in value over time.
Redwood’s chief human resources officer informed the affected employees that the restructuring is meant to sharpen the company’s focus and team size in line with its long-term direction. Laid-off workers will receive severance packages, paid health benefits, and career transition assistance. Straubel concluded by expressing gratitude to the departing employees for their contributions to the company’s development.
Source: TechCrunch
