Redwood Materials Cuts 10% of Staff as It Refocuses on Energy Storage Growth

New updates have been reported about Redwood Materials.

Redwood Materials has eliminated roughly 135 jobs, or about 10% of its workforce, in a restructuring aimed at aligning headcount with the rapid expansion of its energy storage business and maintaining operational discipline after prior hiring growth. The move follows a 5% workforce reduction five months ago and comes three months after Redwood raised $425 million at a valuation above $6 billion, underscoring that the cuts are strategic rather than a liquidity-driven retrenchment.

Founder and CEO JB Straubel told remaining employees that Redwood’s materials business is on a clear path to profitability and that the company continues to lead the U.S. battery recycling market while building momentum in energy storage, supported by new supply deals with customers such as Crusoe AI and Rivian. Straubel said some parts of the organization had expanded faster than needed, prompting reductions across engineering and operations, and stressed that the company can execute its critical projects with a smaller, more focused team, positioning Redwood to withstand sector headwinds that have pushed peers into bankruptcy while it pursues a more integrated, cost-effective critical materials and storage platform.