Markets & Business
Redwood Materials cuts 10% of staff in restructuring
Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, to restructure its operations and prioritize its growing energy storage business.
Redwood Materials has laid off around 135 employees, representing roughly 10% of its workforce, as the company restructures to prioritize its energy storage business. This reduction follows a 5% workforce cut five months ago. The current restructuring also comes three months after the battery-recycling company closed a $425 million funding round that valued the business at north of $6 billion.
The workforce reduction comes amid broader volatility in the battery sector, as the automotive industry in the US has backed away from plans to transition to electric vehicles. Earlier this month, competitor Ascend Elements filed for Chapter 11 bankruptcy protection, the US bankruptcy protection process. Other battery makers have also restructured or gone out of business under similar market pressures.
However, Redwood Materials founder and CEO JB Straubel told employees that the company is not heading down the same path. In an email to staff, Straubel stated that Redwood is currently at its strongest point yet, and that its materials business is progressing toward profitability with an exciting roadmap ahead. “We have successfully adapted to changes in the market that have bankrupted many of our competitors,” Straubel wrote.
He noted that while parts of the company expanded faster than needed to support its direction, Redwood Materials continues to see momentum in its energy storage business, including partnerships with Crusoe AI and electric automaker Rivian. The layoffs affected multiple divisions, including the engineering and operations organizations. Straubel shared confidence that a smaller, more focused team can deliver on critical projects, and expressed gratitude to the approximately 135 departing employees for their contributions to building Redwood.
Why it matters
Redwood Materials is pivoting its workforce to prioritize energy storage, signaling a strategic shift to maintain profitability despite broader industry volatility that has forced competitors into bankruptcy.