Redwood Materials Lays Off 10% of Staff as COO Exits and Strategy Shifts

Redwood Materials is cutting roughly 10% of its workforce, as the battery recycling startup pulls back from an expansion phase that CEO JB Straubel now says went too far, too fast. The layoffs come alongside a wave of leadership departures that suggest a company genuinely rethinking how it's organized, not just trimming headcount.

COO Chris Lister Is Out and So Are Several VPs.

A key development in the restructuring is that Chris Lister, the company’s Chief Operating Officer, is stepping down. The Redwood Materials COO leaves the company citing retirement, following his tenure that began in 2023. His exit adds to a series of leadership changes, including multiple vice presidents across engineering, manufacturing, and supply chain functions.

This wave of departures highlights a broader Redwood leadership change, raising questions about why Redwood Materials COO left company at a critical phase of the company’s evolution.

Straubel Admits the Company Expanded Too Quickly

The Redwood Materials restructuring is focused on simplifying operations and reducing management layers. CEO JB Straubel acknowledged that the company expanded too quickly in certain areas. In a statement to employees, he said the company intends to become a “smaller, more focused team.” This approach is designed to improve efficiency and align resources with priority business segments.

This step mirrors the wider industry developments, where companies are restructuring to adapt to shifting priorities. Recent reports on Disney and Snapchat layoffs tied to AI workforce restructuring highlight how major firms are recalibrating their teams to align with changing business and technology demands.

Strategic Move Toward Energy Storage and Infrastructure Growth

As part of its new strategy, Redwood is prioritizing growth in energy storage systems, TechCrunch reported. The company is expanding beyond battery recycling to support grid-scale storage and infrastructure demands.

This includes reusing electric vehicle batteries and partnering with companies such as Rivian and Crusoe. This shift aligns with rising demand from AI data centers and the integration of renewable energy into the energy ecosystem, positioning Redwood to seize opportunities in this space.

What the Restructuring Actually Signals

The layoffs and leadership restructuring at Redwood Materials indicate a transition phase for the company. While the short-term impact includes workforce reductions and executive exits, the long-term focus remains on operational efficiency and market expansion.

By aligning its structure with strategic priorities, Redwood aims to strengthen its position in energy storage and sustainable infrastructure. The changes suggest a calculated move to balance growth ambitions with execution discipline.