Lion Electric, the Canadian electric truck and bus startup, has made a strategic move to cut 150 jobs, constituting approximately 10% of its workforce in the United States and Canada. The decision is part of Lion Electric’s broader efforts to streamline operations and achieve profitability in the highly competitive electric vehicle market.
The job cuts span various departments within Lion Electric, impacting roles in production overhead, manufacturing, product development, and administrative functions. The company, known for designing and manufacturing all-electric commercial urban trucks (Class 5 to Class 8) and school buses, acknowledges the difficulty of the decision but deems it necessary for the business’s financial health.
Marc Bedard, Lion Electric’s CEO and founder, expressed the company’s commitment to navigating the challenges of electrification, stating, “Although this was a very difficult decision and we are sad to part ways with valued employees, this initiative was the right thing to do for the business at this point in time.”
Despite the workforce reduction, Bedard expressed confidence in the remaining team’s capability to uphold Lion’s leadership position in the electric vehicle market. The Montreal-based company recently reported record third-quarter revenue of $80.3 million, a significant increase from $41 million in the same period the previous year. Lion delivered 245 vehicles during Q3, showcasing the company’s growth trajectory.
While Lion Electric has faced challenges, such as a net loss of $19.9 million in the third quarter, the company’s strategic decisions aim to position it for sustained success. The electric vehicle sector has witnessed various startups making tough choices, including job cuts and financial reorganizations, reflecting the competitive and dynamic nature of the industry.
Lion Electric’s market value is currently estimated at $359.6 million, and the company remains committed to advancing its position in the rapidly evolving electric transportation landscape.