Lion Electric suprime temporalmente 400 empleos

Lion Electric, a Quebec-based electric bus manufacturer, says it will temporarily lay off 400 employees in the US and Canada. As a result, it will also suspend production at its facility in Illinois. But it has gotten a credit extension from its lenders.

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Imagen: Lion Electric

The company has been struggling financially for quite some time. Now comes the next wave of layoffs – 400 Lion employees will lose their jobs “in both Canada and the United States, across all departments within the organization.” According to Lion, these layoffs are temporary.

As a result of the workforce reduction, Lion Electric says it will suspend manufacturing operations at its facility in Joliet, Illinois. Across all of the manufacturer’s locations and departments, there are now just 300 left.

This is already the third wave of layoffs. En agosto, the manufacturer already cut 300 jobs across the US and Canada and scaled back production after a 50 per cent decline in revenue YOY. At the end of 2023, Lion Electric had already reduced its workforce by about ten per cent.

Hace apenas unas semanas, Lion agreed with its lenders to extend the grace period for a loan agreement by two weeks to 30 November 2024. That was apparently not long enough, as the company now says that the grace period was extended to 16 December. It gives Lion Electric access to “a limited portion of the receivables” to ensure “minimum liquidity needs until December 16, 2024,” giving it time for restructuring measures.

However, the manufacturer makes it clear that success is not guaranteed. “There can be no assurance that the Company will be successful in pursuing and implementing any such alternatives, nor any assurance as to the outcome or timing of any such alternatives,” it says.

A few weeks ago, Lion Electric said that the sale of the company was one option – which is still on the table and is becoming more likely at this point.

thestar.com, thelionelectric.com

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