Redwood Materials has cut approximately 135 jobs—about 10% of its workforce—as part of a restructuring effort aimed at aligning operations with its expanding energy‑storage business. The layoffs come just five months after the company reduced staff by 5% and follow a $425 million funding round in January that valued the battery‑recycling firm at over $6 billion. They also reflect broader challenges in the battery sector, where firms such as Ascend Elements have filed for Chapter 11 bankruptcy and U.S. automakers have scaled back some of their most ambitious electric‑vehicle transition plans, affecting demand for battery components.
Founder and CEO JB Straubel told remaining employees that the cuts were not a sign of distress. In an internal email viewed by TechCrunch, he wrote, “Redwood today is the strongest it’s ever been. The materials business is well on its way to profitability and has an exciting roadmap ahead.” Straubel noted that Redwood continues to dominate the U.S. battery‑recycling market and is gaining momentum in energy storage, having secured deals to supply recycled batteries to Crusoe AI and, most recently, to electric automaker Rivian for use in powering its facilities.
According to Straubel, certain divisions had expanded faster than needed to support the company’s strategic direction, prompting cuts across multiple teams, including engineering and operations. “We are confident that we can deliver on our critical projects with a smaller, more focused team,” he wrote. “We have successfully adapted to market changes that have bankrupted many of our competitors.”
Redwood’s chief HR officer informed affected employees that the reductions were intended to sharpen the company’s focus and align team sizes with future priorities. Laid‑off workers will receive severance, paid health benefits, and career‑transition assistance. Straubel expressed gratitude to those departing, acknowledging their contributions to building Redwood, and reiterated his confidence in the company’s long‑term trajectory, describing it as a self‑sustaining business poised to become the world’s most integrated and cost‑effective provider of critical materials and energy‑storage solutions.
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