Archive — US — techcrunch
Redwood Materials lays off 10% in restructuring to chase energy storage business
Redwood Materials has laid off around 135 employees, or 10% of its workforce, as part of a restructuring to focus on its energy storage business. This follows a previous layoff and comes amidst a challenging market for battery companies. Despite the layoffs, CEO JB Straubel expressed confidence in the company's strength and roadmap for profitability, emphasizing successful adaptation to market changes.
Key points
- Redwood Materials laid off 10% of its workforce (135 employees) to restructure for energy storage.
- The layoffs follow a previous 5% workforce cut and come after a $425 million funding round.
- Redwood remains resilient, with CEO JB Straubel asserting the company's strength and profitability roadmap.
- The layoffs are aimed at adapting to rapid changes in the market, with several competitors facing financial challenges.
- Affected employees will receive severance, health benefits, and career transition assistance.
Why it matters
- The battery industry is experiencing a downturn, exemplified by the bankruptcy of Ascend Elements.
- This aligns with larger trends where companies in the automotive sector are scaling back electric vehicle aspirations.
- Redwood's focus on energy storage and recycling reflects a growing industry trend towards sustainable solutions.
Despite recent layoffs, Redwood Materials aims to sharpen its focus on energy storage, demonstrating resilience amid industry challenges. CEO JB Straubel's optimism suggests strong future prospects as the company prioritizes profitability and adaptation to market demands.