Redwood Materials has reduced its workforce by approximately 10 percent, laying off about 135 employees as part of a strategic restructuring aimed at strengthening its growing energy storage operations. The move comes just months after a previous round of job cuts and shortly after the company secured a $425 million funding round that pushed its valuation beyond $6 billion.

The layoffs arrive during a challenging period for the broader battery industry, where several companies have faced financial strain, restructuring, or closure amid slowing momentum in electric vehicle adoption in the United States. Despite these industry headwinds, Redwood’s leadership insists the company remains on solid ground and is not following the same downward trajectory as some of its peers.

Chief Executive Officer JB Straubel reassured remaining staff in an internal communication that the company is in its strongest position yet. He emphasized that the core materials business is progressing toward profitability and highlighted a promising roadmap ahead, particularly in the rapidly expanding energy storage segment.

Redwood has recently secured partnerships to supply recycled battery materials for use in powering facilities, reflecting its push into energy infrastructure. Straubel noted that while the company continues to lead in the U.S. battery recycling market, certain divisions had grown faster than necessary, prompting the need for a leaner and more focused operational structure.

The restructuring impacts multiple departments, including engineering and operations, with the company aiming to maintain productivity while operating with a smaller team. Leadership expressed confidence that ongoing projects would continue without disruption and that the streamlined workforce would enhance efficiency.

Affected employees are being offered severance packages, continued health benefits, and career transition support. Straubel acknowledged their contributions, stating that their efforts were instrumental in building the company’s foundation as it pivots toward long-term growth in energy storage.

Source: TechCrunch