This sound is generated automatically. Let us know if you have any feedback.
Dive Brief:
- Canadian based electric truck, bus and battery manufacturing startup Lion Electric is cutting 150 jobsabout 10% of its head count, according to a Nov. 27 company press release.
- Lion Electric said the layoffs seek to streamline the company’s cost structure and improve its ability to meet profitability targets.
- The layoffs will affect employees in manufacturing overhead, manufacturing, product development and administrative operations in both Canada and the United States.
Dive Insight:
Lion Electric is among several battery and EV startups cutting staff amid slowing EV demand and uncertain economic conditions.
“While this was a very difficult decision and we are sad to part ways with valued employees, this initiative was the right thing for the business at this time,” said Marc Bedard, CEO and founder of Lion Electric. “I am confident that the workforce that remains in place is more than capable of continuing to develop Lion’s leadership.”
The layoff news comes after the company raised about $142 million in July to help fund the company’s working capital and growth, including through expansion projects in Mirabel, Quebec, and Joliet, Illinois, according to Press release.
Lion Electric opened first US plant in Joliet this July, the largest EV production facility with an expected production capacity of 2,500 fully electric school buses by the end of 2023. At full capacity, the plant will be able to produce 20,000 vehicles per year – including electric trucks and buses – and employ 1,400 workers, according to with Lion Electric.
The Mirabel battery plant, which is still awaiting final certification of its first battery pack model, still aims to reach 1.7 gigawatt-hours of production capacity by the end of this year, according to the company Third quarter earnings call.
In the quarter, the startup reported a net loss of $19.9 million, more than $2 million more in losses compared to the same quarter last year. However, the company also delivered 245 vehicles quarter, 89 more than in the third quarter of 2022.
Lion isn’t the only electric vehicle and battery maker with workforce cuts this year.
This November, LG Energy Solution announced layoffs approximately 170 employees from December 2023 to January 2024 due to slower than expected electric vehicle demand. The company develops EV batteries for US automakers such as Volvo, Stellantis, Ford and General Motors.
Meanwhile, Our Next Energy, a Michigan-based EV battery startup that had raised $300 million in a June Series B funding round, had cut 25% of staff as of Monday, according to Reuters.