Redwood Materials, the battery recycling giant, has laid off around 10% of its workforce amid restructuring for its burgeoning energy storage business.

This latest round of layoffs comes five months after a 5% cut and three months after securing a hefty $425 million funding round. Redwood’s CEO JB Straubel insists the company is stronger than ever, claiming it dominates the US battery recycling market and is making strides in energy storage.

“Redwood today is the strongest it’s ever been,” says Straubel. “The materials business is well on its way to profitability.”

The layoffs affect multiple divisions, including engineering and operations. Redwood has recently partnered with Crusoe AI and Rivian, supplying recycled batteries for their facilities.

While the move signals potential cost-saving measures, it remains to be seen if Redwood can navigate the challenging battery industry landscape without compromising its growth trajectory.