According to a news release from Lion Electric, these layoffs will result in 150 employees losing their jobs. The company is undergoing these reductions in an effort to rationalize its cost structure and improve its ability to reach its profitability objectives.
Lion Electric notes that these layoffs will affect workers in its production overhead, manufacturing, product development and administrative functions. It also mentions that the layoffs will include employees in both the U.S. and Canada.
Marc Bedard, founder and CEO of Lion Electric, said the following about the layoffs:
“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. I am confident that the workforce remaining in place is more than capable to continue growing Lion’s leadership.”
Investors will note that Lion Electric reported a net loss of $19.9 million in the third quarter of 2023. That was wider than the $17.2 million net loss reported in the same period of the year prior.
Lion Electric Joins Layoffs Trend
Layoffs have become a common occurrence over the last year as companies have been working to overcome certain headwinds. That includes high interest rates, inflation, and other issues. While inflation has started to cool down, some businesses are still reducing jobs to cut costs during a tough economy.
LEV stock is down 4% as of Tuesday morning and is down 28.6% since the start of the year.
Investors looking for more of the most recent stock market stories will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.