Redwood Materials lays off 10% of workforce in restructuring toward energy storage

Redwood Materials has laid off approximately 135 employees, representing roughly 10 percent of its workforce, as the battery recycling company restructures to focus on its growing energy storage business. The cuts mark the second round of layoffs at Redwood in less than a year. The company cut 5 percent of its workforce five months ago, according to emails viewed Chief Executive JB Straubel told remaining employees that the layoffs reflect a need to sharpen focus rather than financial distress. In an email viewed Straubel highlighted what he described as "great momentum" in Redwood's energy storage business. The company recently announced deals with Crusoe AI and electric automaker Rivian to supply recycled batteries for powering facilities. Straubel also noted that Redwood continues to dominate the U.S. battery recycling market. The battery industry has faced headwinds as U.S. automakers have pulled back from aggressive electric vehicle transition plans. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection. Straubel told employees that Redwood had "successfully adapted to changes in the market that have bankrupted many of our competitors." Laid-off employees are receiving severance, paid health benefits, and career transition assistance, according to Straubel's email.