Nevada-based battery recycling firm Redwood Materials announced plans on Monday to lay off about 10% of its workforce. The move is part of a broader restructuring aimed at reallocating resources toward the company’s expanding energy storage division. Internal communications reviewed by TechCrunch revealed the decision affects multiple departments but does not target specific roles. Employees were notified via company-wide emails detailing the changes.
The restructuring follows a strategic pivot announced last quarter. Redwood Materials is shifting focus from its traditional battery recycling business to develop large-scale energy storage systems. This includes projects targeting grid-scale storage and residential battery solutions. The company cited growing demand for renewable energy infrastructure as the primary driver for the shift.
Redwood Materials employs roughly 1,200 people globally. The layoffs will reduce the workforce by about 120 positions. Affected employees will receive severance packages and extended healthcare benefits for up to six months. The company stated it would provide outplacement services to assist with job transitions.
Chief Executive JB Straubel emphasized the necessity of the move in a statement. He acknowledged the difficult nature of workforce reductions but framed it as essential for long-term growth. The company plans to hire in new roles aligned with energy storage development, particularly in engineering and project management.
Industry analysts note the broader trend among battery firms expanding into energy storage. Redwood Materials’ competitors have also scaled similar initiatives in recent years. The company remains one of the largest domestic suppliers of recycled battery materials in the U.S.
Source: techcrunch.com