Battery recycling firm Redwood Materials has cut about 135 jobs, roughly 10% of its workforce, as it reshapes its structure to support a rapidly expanding energy storage business, according to a report by TechCrunch.
The move follows an earlier round of layoffs five months ago, when the company trimmed 5% of its staff. It also comes just three months after Redwood Materials raised $425 million in fresh funding, pushing its valuation past $6 billion.
The cuts land at a difficult moment for the broader battery sector. Earlier this month, Ascend Elements filed for Chapter 11 bankruptcy, citing what it described as overwhelming financial pressures. Across the industry, several battery makers have scaled back operations or shut down, as U.S. automakers pull away from some of their most ambitious electric vehicle rollout plans.
READ: Meta to lay off 10% workforce starting May 20, more cuts planned (April 18, 2026)
Even so, Redwood is framing the layoffs as a strategic reset rather than a sign of trouble. Founder and CEO JB Straubel told remaining employees the company remains on solid footing. “Redwood today is the strongest it’s ever been,” Straubel wrote in an internal email reviewed by TechCrunch. “The materials business is well on its way to profitability and has an exciting roadmap ahead.”
He pointed to Redwood’s leadership in the U.S. battery recycling market while highlighting growing traction in its newer energy storage vertical. The company has recently struck partnerships with Crusoe AI and electric vehicle maker Rivian, supplying recycled batteries to help power their operations. Redwood declined to comment beyond Straubel’s message.
In the same note, Straubel acknowledged that “parts of the company have expanded faster than needed to support the direction” of the business. The restructuring will affect multiple teams, including engineering and operations, according to an employee familiar with the layoffs.
He framed the cuts as part of a broader effort to streamline the company for its next phase. “We are confident that we can deliver on our critical projects with a smaller team that is more focused,” Straubel wrote, adding that Redwood has already adapted to market shifts that have pushed several competitors into bankruptcy.
READ: Amazon denies reports of 14,000 more layoffs, calls claims ‘false’ (April 8, 2026)
Straubel said he remains bullish on the company’s trajectory. “I am more 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,” he wrote. He described the business as self-sustaining and positioned to grow in value over time, emphasizing that Redwood has both the team and the technology to stand apart in the sector.
Employees affected by the layoffs were told the decision was meant “to sharpen our focus, our work and the size of our teams to support the direction Redwood is going in the future,” according to a message from the company’s chief HR officer reviewed by TechCrunch.
Straubel said those leaving the company will receive severance, continued health coverage for a period of time, and career transition support. “I am grateful to the approximately 135 employees who we say goodbye to today — they’ve all contributed to building Redwood,” he wrote.