Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, as part of a restructuring effort aimed at aligning operations with its expanding energy storage business.
Second Round Of Layoffs Follows Recent Funding
The cuts come five months after a previous 5% workforce reduction and three months after Redwood raised $425 million in funding, which valued the company at more than $6 billion.
The layoffs occur during a challenging period for the battery sector. Ascend Elements recently filed for Chapter 11 bankruptcy, citing financial difficulties, while other companies in the industry have restructured or shut down amid slowing electric vehicle adoption in the United States.
CEO Says Company Remains Financially Strong
JB Straubel told remaining employees that the layoffs do not reflect financial instability, stating that the company’s materials business is approaching profitability and continues to lead the U.S. battery recycling market.
He said the restructuring follows rapid expansion in certain areas that exceeded current operational needs.
Energy Storage Expansion Drives Strategic Shift
Redwood is increasing its focus on energy storage, supported by recent agreements with companies including Crusoe AI and Rivian.
The company is supplying recycled battery materials for use in energy systems that power facilities, signaling a broader move beyond recycling into energy infrastructure.
Layoffs Span Multiple Departments
The workforce reductions affect several divisions, including engineering and operations, according to employees familiar with the matter.
Company leadership stated that a smaller, more focused team would be sufficient to execute key projects and adapt to changing market conditions.
Support Provided To Affected Employees
Employees impacted by the layoffs are receiving severance packages, continued health benefits, and career transition assistance, according to internal communications.
Featured image credits: Brady & Kunz
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