Redwood Materials Lays Off 10% In Restructuring To Chase Energy Storage Business

Redwood Materials has laid disconnected astir 135 employees, aliases astir 10% of its workforce, arsenic it restructures to amended accommodate its increasing power retention business, TechCrunch has learned.

The cuts travel conscionable 5 months aft Redwood cut 5% of its workforce, and 3 months aft it closed a $425 cardinal backing information that boosted nan artillery recycling company’s valuation to northbound of $6 billion, arsenic TechCrunch previously reported.

It’s been a difficult clip successful nan artillery manufacture lately. Earlier this month, artillery recycler Ascend Elements revenge for Chapter 11 bankruptcy protection, citing “insurmountable” financial challenges. Some battery-makers person besides restructured aliases gone retired of business arsenic nan automotive manufacture successful nan U.S. has backed distant from its astir optimistic and eager plans to modulation to electrical vehicles.

But Redwood Materials laminitis and CEO JB Straubel told labor that this caller information of cuts is not a motion that nan institution is heading down nan aforesaid path.

“Redwood coming is nan strongest it’s ever been,” Straubel wrote successful an email to nan workers who weren’t laid off, according to a transcript viewed by TechCrunch. “The materials business is good connected its measurement to profitability and has an breathtaking roadmap ahead.”

Straubel noted that Redwood “continue[s] to predominate nan US artillery recycling market” but besides touted nan company’s “great momentum” successful its caller energy retention business. Redwood has precocious announced deals pinch Crusoe AI and, astir recently, electrical automaker Rivian to supply recycled batteries that tin beryllium utilized to powerfulness those companies’ facilities. The institution declined to remark beyond nan contents of Straubel’s email.

In his message, Straubel wrote that “parts of nan institution person expanded faster than needed to support nan direction” of Redwood. As a result, he said Redwood is making cuts crossed aggregate divisions, including nan engineering and operations organizations, according to an worker who was granted anonymity to talk nan layoffs.

“We are assured that we tin present connected our captious projects pinch a smaller squad that is much focused,” he wrote. “We person successfully adapted to changes successful nan marketplace that person bankrupted galore of our competitors.”

Straubel went connected to constitute that he is “more excited than ever pinch our way up arsenic we build nan astir integrated and cost-effective captious materials and power retention business successful nan world.”

“This is simply a self-sustaining business and will proceed to make this institution much valuable complete time. We person nan squad and nan exertion to do what nary different institution can,” he wrote.

Workers who were laid disconnected were told by Redwood’s main HR serviceman that nan layoffs were made “to sharpen our focus, our activity and nan size of our teams to support nan guidance Redwood is going successful nan future,” according to a transcript of her email, which was viewed by TechCrunch.

Employees who were laid disconnected are receiving severance and paid wellness benefits, according to Straubel’s email, arsenic good arsenic “career modulation assistance.”

“I americium grateful to nan astir 135 labor who we opportunity goodbye to coming — they’ve each contributed to building Redwood,” he wrote.