According to information from TechCrunch, battery recycling technology company Redwood Materials has laid off about 135 employees, equivalent to 10% of the labor force, in the process of restructuring to serve the development orientation of the energy storage segment.
This move took place just 5 months after the company cut 5% of its personnel and 3 months after completing the 425 million USD funding round, raising the enterprise's valuation to over 6 billion USD.
The battery industry has recently faced many challenges. In early April, Ascend Elements also had to file for bankruptcy protection due to financial difficulties. Some other manufacturers also had to restructure or shrink operations as the electric vehicle market in the US reduced growth expectations.
However, CEO JB Straubel of Redwood Materials believes that the personnel cuts do not reflect the weakening of the company. In an internal announcement, he said that some departments have expanded faster than the actual needs, so it is necessary to streamline to increase operational efficiency.
Redwood Materials is currently focusing on developing both battery recycling and energy storage. The company has signed cooperation agreements with partners such as Rivian to supply recycled batteries for the energy system.
According to business leaders, personnel streamlining aims to build a more streamlined but more focused team, in the context of increasing competition in the energy and battery industries.
