Redwood Materials gives up 10% on recycling to drive an energy-saving business

Redwood Materials has laid off about 135 employees, or about 10% of its workforce, as it restructures to accommodate its growing energy storage business, TechCrunch has learned.

The wounds come about five months after the Redwood cut 5% of the workforceand three months after closing a $425 million deal that raised the value of the battery recycling company north of $6 billion, according to TechCrunch. it has already been said.

It’s been a tough time in the battery industry lately. Earlier this month, the Ascend Elements battery charger was shelved for Chapter 11 bankruptcy protectionciting “impossible” financial problems. Some battery manufacturers have also reshuffled or gone out of business as the US auto industry has backed away from its optimistic and ambitious plans to transition to electric vehicles.

But Redwood Materials founder and CEO JB Straubel told employees that this new round is not a sign that the company is going down the same path.

“Redwood today is the strongest it has ever been,” Straubel wrote in an email to employees who were not replaced, according to a document seen by TechCrunch. “The energy business is poised to benefit and has an exciting future.”

Straubel said Redwood will “continue to dominate the US battery recycling market” and pointed to the company’s “great momentum” in its innovation. energy storage business. Redwood has recently announced Crusoe AI and, more recently, electronics manufacturer Rivian to provide renewable batteries that can be used to power these companies. The company declined to comment beyond the content of Straubel’s email.

In his message, Straubel wrote that “some parts of the company have grown faster than necessary to support the management” of Redwood. As a result, he said, Redwood is changing several divisions, including engineering and operations organizations, according to an employee who was not named to discuss the layoffs.

“We are confident that we can carry out our most important tasks with a small and focused team,” he wrote. “We have successfully adapted to the changes in the market that have disrupted many of our competitors.”

Straubel went on to write that he is “more excited than ever with the way we are moving forward as we build the most important and affordable products and energy storage products around the world.”

“This is a self-sustaining business and will continue to make this company important over time. We have the team and technology to do what no other company can,” he wrote.

The laid-off employees were told by Redwood’s head of HR that the layoffs were “in order to improve our focus, our work and the growth of our team to support Redwood’s future direction,” according to his email, which was seen by TechCrunch.

Laid-off workers are receiving benefits and paid health benefits, according to Straubel’s email, as well as “job transition assistance.”

“I’m grateful to the approximately 135 employees we’re saying goodbye to today — all of whom have helped build Redwood,” he wrote.