In 2021, Lion Electric, a manufacturer of all-electric school buses and urban trucks, announced that it would build a $70 million factory in Joliet, Illinois, expected to create 745 jobs. At the time, Lion Electric described the facility as the largest production site for zero-emission medium and heavy-duty vehicles in the U.S.
The plant opened last year and the company anticipated a manufacturing capacity of 2,500 electric school buses by the end of 2023.
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Now, Lion Electric has announced its fourth round of company-wide layoffs since last November. The latest round is a 30% workforce reduction that will affect about 300 workers.
The Chicago Tribune reported that the most recent layoffs would affect a significant amount of workers at the Illinois factory and result in an indefinite delay in truck production at the facility.
Lion Electric did not disclose how many Illinois workers were impacted but said that it expects most of the layoffs to be temporary. The company estimated that the initiative would lead to an annualized cost savings of up to $25 million, assuming it does not rehire the temporarily laid off employees.
The company also announced other measures, including a $5 million loan from a Quebec provincial government affiliate, a debt revision that will delay interest payments, a plan to sell battery packs to external companies and a potential sublease of a “significant portion” of the Joliet factory.
Lion Electric’s second quarter results for 2024 mentioned 2,100 vehicles on the road despite delivering nearly 100 less than last year’s second quarter. The company also reported a gross loss of $15.2 million, citing higher manufacturing costs, and a net loss of $19.3 million.
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