EnerSys to cut 11% of non-production global workforce

EnerSys (ENS) announced a workforce reduction affecting approximately 575 employees, or 11% of its non-production global workforce, and is focused primarily on corporate and management positions. This action is part of a strategic restructuring plan under the Company’s new leadership to better align resources with current business priorities and long-term objectives. “Today’s actions, while difficult, are necessary for EnerSys to remain competitive in our markets,” said Shawn O’Connell, President and Chief Executive Officer of EnerSys. “We’ve spent the past six months listening, evaluating, and testing how we can best serve our customers, deliver stronger returns, and build a more agile organization. This decision reflects our commitment to those priorities, ensuring we have the right structure in place to operate more efficiently, optimize cross-functional collaboration, and deliver even greater value – for our customers and shareholders. The Company expects the separations to be substantially complete by the end of the second quarter of fiscal 2026, subject to local law requirements. Combined with other non-headcount-related actions, these changes are expected to result in approximately $80 million in annualized savings beginning in fiscal year 2026. This estimate is comprised of approximately $70 million in savings, representing a reduction of over 10% of the Company’s fiscal 2025 operating expenses as well as an estimated $10 million reduction in cost of goods sold. The Company expects to realize approximately $30 million to $35 million of savings in fiscal year 2026, with material benefits beginning in the third fiscal quarter. Estimated savings exclude one-time charges related to the restructuring, which are anticipated in the range of $15 million to $20 million with the majority occurring in the second and third quarter of fiscal 2026, primarily for severance and other related costs.