Canadian electric truck and bus startup Lion Electric is cutting 150 jobs, about 10% of its head count, in the U.S. and Canada as it seeks to reach profitability.
“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,” Marc Bedard, CEO and founder of Lion, said in a news release.
Lion is far from alone in making hard decisions around electrification. Several electric vehicle startups have filed for bankruptcy reorganization, executed reverse stock splits to prop up their share prices and cut jobs over the past year.
Job cuts across all areas of Lion’s business
Lion’s job cuts affected production overhead, manufacturing, product development and administrative functions. The company creates, designs and manufactures all-electric Class 5 to Class 8 commercial urban trucks and all-electric school buses.
“I am confident that the workforce remaining in place is more than capable to continue growing Lion’s leadership,” Bedard said.
The Montreal-based company posted record third-quarter revenue of $80.3 million, up $39.4 million, from $41 million in Q3 2022. It recorded record gross profit of $5.4 million compared to a gross loss of $3.8 million a year earlier. But its net loss of $19.9 million was greater than the net loss of $17.2 million a year ago.
Lion delivered 245 vehicles in Q3, 89 more than the 156 delivered in the same period last year.
Lion shares closed down 10 cents, or 5.9%, Monday at $1.59. The company has a market value of $359.6 million.
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