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Redwood Materials lays off 10% in restructuring to chase energy storage business

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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.

The cuts come just five months after Redwood cut 5% of its workforce, and three months after it closed a $425 million funding round that boosted the battery recycling company’s valuation to north of $6 billion, as TechCrunch previously reported.

It’s been a difficult time in the battery industry lately. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection, citing “insurmountable” 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.

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.

“Redwood today is the strongest it’s ever been,” Straubel wrote in an email to the workers who weren’t laid off, according to a copy viewed by TechCrunch. “The materials business is well on its way to profitability and has an exciting roadmap ahead.”

Straubel noted that Redwood “continue[s] to dominate the US battery recycling market” but also touted the company’s “great momentum” in its new energy storage business. 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’ facilities. The company declined to comment beyond the contents of Straubel’s email.

In his message, Straubel wrote that “parts of the company have expanded faster than needed to support the direction” 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.

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“We are confident that we can deliver on our critical projects with a smaller team that is more focused,” he wrote. “We have successfully adapted to changes in the market that have bankrupted many of our competitors.”

Straubel went on to write that he is “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.”

“This 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,” he wrote.

Workers who were laid off were told by Redwood’s chief HR officer that the layoffs were made “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 copy of her email, which was viewed by TechCrunch.

Employees who were laid off are receiving severance and paid health benefits, according to Straubel’s email, as well as “career transition assistance.”

“I am grateful to the approximately 135 employees who we say goodbye to today — they’ve all contributed to building Redwood,” he wrote.

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BREAKING: Tinubu Approves Six New Appointments in Education Sector

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President Bola Ahmed Tinubu on Wednesday approved six new appointments in the education sector.

According to a statement released by the Presidency, the appointments are as follows:

Prof. Modupe Adeola Adelabu – Chairman, Governing Board, National Examination Council (NECO)

Prof. Ibrahim Dantani Wushishi – Retained as Registrar/Chief Executive, NECO

Prof. Babatunde Salako – Chairman, Governing Board, National Board for Technical Education (NBTE)

Prof. Idris M. Bugaje – Reappointed as Executive Secretary, NBTE (second and final 5-year term)

Engr. Dr. Bongfa Binfa – Rector, Federal Polytechnic, N’yak-Shendam, Plateau State (5-year term)

Prof. Chinwe Veronica Anunobi – Renewed as Director/Chief Executive, National Library of Nigeria (final 5-year term)

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Accord Members Stage Protest, Demand Recognition Of Imumolen As National Chairman

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By Emmanuel Oloniruha

 

Some members of Accord party on Tuesday staged a protest at the Independent National Electoral Commission (INEC) headquarters, Abuja, demanding immediate recognition of Prof. Christopher Imumolen as the party’s National Chairman.

 

The protesters, who thronged the commission’s office with placards and a formal petition, called on INEC to comply with subsisting court orders affirming Imumolen’s leadership and to update its records accordingly

 

Speaking during the protest, Imumolen, a former presidential candidate of the party, expressed frustration over what he called INEC’s reluctance to enforce judicial decisions.

 

He said that the commission, as a regulatory body, must remain neutral and uphold the rule of law.

 

“We have not come here to cause any problem, but to speak because it seems INEC has not been listening.

 

“INEC should not be found supporting one faction over another, especially when there is a court order giving direction on what to do. A court order is not advisory; it is meant to be obeyed,” Imumolen said.

 

He queried INEC for complying with similar court orders regarding other parties, such as African Democratic Congress (ADC), while failing to do so for Accord.

 

He said that in spite of several court orders and petitions submitted to INEC, it had continued to recognise the Maxwell Mgbudem-led faction.

 

“We have submitted numerous letters and court proceedings to INEC, yet their website still reflects another person as chairman. Justice delayed is justice denied,” he stated.

 

Imumolen alleged that the Mgbudem-led faction had been illegally removing state chairmen supporting the court-mandated leadership.

 

“INEC is under a constitutional obligation to obey valid court orders. If there is any claim that the order has expired, the critical question remains: why was it not obeyed while it was subsisting?

 

“Had INEC complied accordingly, Prof. Chris Imumolen would have been duly reflected on the INEC website as national chairman, pending any application by Mr Maxwell Mdubem to vacate the order which, till date, has not been vacated,’’ he said.

 

He said that the demands of the protesters, as stated in the petition, included calls for the immediate recognition and formal listing of Imumolen as the national chairman on the INEC website.

 

“We hereby demand that INEC immediately recognise Chris Imumolen as national chairman in full compliance with subsisting court orders; and cease recognition of Mdubem, as no court order authorises such recognition.

 

“All duly elected state chairmen, who emerged through valid congresses and whose tenures remain subsisting, must also be recognised by INEC without prejudice,’’ he said.

 

The affected states, according to him, include: Zamfara, Borno, Ogun, Katsina, Yobe, Bauchi, Ondo, Ekiti, Lagos, Osun, Nasarawa, FCT, Edo, Delta, Benue, Oyo, Plateau and Kwara.

 

Imumolen called on INEC to immediately comply with all subsisting court orders, as issued by competent courts of jurisdiction.

 

“Court orders are meant to be obeyed—not ignored, not delayed and certainly not selectively applied.

 

“We trust that INEC will act swiftly to correct these anomalies and uphold the sanctity of the law,’’ he said.

 

He warned that failure to act accordingly risks placing INEC in direct conflict with judicial authorities and constitutional order.

 

“If laws are not obeyed, then should we take humanity into our hands? No, we will not. But if the court has decided, you follow it,” Imumolen said.

 

He also alleged that Mdubem had continued to deploy institutional mechanisms to intimidate and victimise duly-elected state chairmen who did not align with his claim to leadership.

 

INEC National Commissioner, Prof. Abdullahi Zuru, while addressing the protesters, said that the commission would consider the petition they submitted.

 

“I have listened to what you have said. I have received some communication by you. I will forward this to the commission and it will look into whatever it is there and act appropriately,’’ Zuru said.(NAN)(www.nannews.ng)

 

OBE/WAS

 

Edited by ‘Wale Sadeeq

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