Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, in a restructuring effort. This move comes just five months after the company cut 5% of its workforce and three months after it closed a $425 million funding round that boosted its valuation to over $6 billion.
The layoffs are part of Redwood's efforts to adapt to changes in the market, according to founder and CEO JB Straubel. Despite challenging times in the battery industry, with some companies restructing or going out of business, Straubel says Redwood is "the strongest it's ever been." The company continues to dominate the US battery recycling market and has seen growth in its energy storage business.
Redwood has recently announced deals with Crusoe AI and Rivian to provide recycled batteries for their facilities. Straubel wrote in an email to employees that the company is making cuts across multiple divisions, including engineering and operations, but remains confident in its ability to deliver on critical projects with a smaller team.
Employees who were laid off will receive severance, paid health benefits, and career transition assistance.
