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Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business, TechCrunch has learned.<\/p>\n
The cuts come just five months after Redwood cut 5% of its workforce<\/a>, and three months after it closed a $425 million funding round that boosted the battery recycling company\u2019s valuation to north of $6 billion, as TechCrunch previously reported<\/a>.<\/p>\n It\u2019s been a difficult time in the battery industry lately. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection<\/a>, citing \u201cinsurmountable\u201d financial challenges. Some battery-makers have also restructured or gone out of business as the automotive industry in the U.S. has backed away from its most optimistic and ambitious plans to transition to electric vehicles.<\/p>\n But Redwood Materials founder and CEO JB Straubel told employees that this new round of cuts is not a sign that the company is heading down the same path. <\/p>\n \u201cRedwood today is the strongest it\u2019s ever been,\u201d Straubel wrote in an email to the workers who weren\u2019t laid off, according to a copy viewed by TechCrunch. \u201cThe materials business is well on its way to profitability and has an exciting roadmap ahead.\u201d <\/p>\n Straubel noted that Redwood \u201ccontinue[s] to dominate the US battery recycling market\u201d but also touted the company\u2019s \u201cgreat momentum\u201d in its new energy storage business<\/a>. Redwood has recently announced deals with Crusoe AI and, most recently, electric automaker Rivian to provide recycled batteries that can be used to power those companies\u2019 facilities. The company declined to comment beyond the contents of Straubel\u2019s email.<\/p>\n In his message, Straubel wrote that \u201cparts of the company have expanded faster than needed to support the direction\u201d of Redwood. As a result, he said Redwood is making cuts across multiple divisions, including the engineering and operations organizations, according to an employee who was granted anonymity to discuss the layoffs.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco, CA<\/span> \u201cWe are confident that we can deliver on our critical projects with a smaller team that is more focused,\u201d he wrote. \u201cWe have successfully adapted to changes in the market that have bankrupted many of our competitors.\u201d <\/p>\n Straubel went on to write that he is \u201cmore excited than ever with our path ahead as we build the most integrated and cost-effective critical materials and energy storage business in the world.\u201d <\/p>\n \u201cThis is a self-sustaining business and will continue to make this company more valuable over time. We have the team and the technology to do what no other company can,\u201d he wrote. <\/p>\n Workers who were laid off were told by Redwood\u2019s chief HR officer that the layoffs were made \u201cto sharpen our focus, our work and the size of our teams to support the direction Redwood is going in the future,\u201d according to a copy of her email, which was viewed by TechCrunch.<\/p>\n Employees who were laid off are receiving severance and paid health benefits, according to Straubel\u2019s email, as well as \u201ccareer transition assistance.\u201d <\/p>\n \u201cI am grateful to the approximately 135 employees who we say goodbye to today \u2014 they\u2019ve all contributed to building Redwood,\u201d he wrote. <\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n