Redwood Materials has cut approximately 135 jobs, or about 10% of its workforce, as part of a restructuring effort aimed at aligning operations with its expanding energy storage business. The move comes just five months after the company reduced its staff by 5% and follows a $425 million funding round in January that valued the battery recycling firm at over $6 billion.
The layoffs reflect broader challenges in the battery sector, where companies like Ascend Elements have filed for Chapter 11 bankruptcy amid financial strain. U.S. automakers have also scaled back some of their most ambitious electric vehicle transition plans, affecting demand for battery components.
Founder and CEO JB Straubel told remaining employees the cuts were not a sign of distress. “Redwood today is the strongest it’s ever been,” he wrote in an internal email viewed by TechCrunch. “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. The company has secured deals to supply recycled batteries to Crusoe AI and, most recently, electric automaker Rivian for use in powering their facilities.
According to Straubel, certain divisions had expanded faster than needed to support the company’s strategic direction. As a result, cuts were made across multiple teams, including engineering and operations. “We are confident that we can deliver on our critical projects with a smaller team that is more focused,” he wrote. “We have successfully adapted to changes in the market that have bankrupted many of our competitors.”
Employees affected by the layoffs were informed by Redwood’s chief HR officer that the reductions were intended to sharpen the company’s focus and align team sizes with future priorities. Laid-off workers are receiving severance, paid health benefits, and career transition assistance.
Straubel expressed gratitude to those departing, acknowledging their contributions to building Redwood. He 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.
