Two executives also impacted by the restructure
Battery recycler Li-Cycle is laying off 17% of its global workforce, including two executives, as part of its organisational restructuring.
In an announcement, Li-Cycle said it is transitioning from regional management structure to a centralised model.
"We are recalibrating our organisational structure to better align with the more focused priorities of Li-Cycle," said Ajay Kochhar, Li-Cycle President and CEO, in a statement.
"We believe that a centralised model, and the consolidation of our operational and commercial teams, will increase efficiencies and facilitate cross-functional partnerships to enhance our planning process and ability to execute on our short- and long-term objectives."
As a result of the transition, the company will lay off approximately 60 positions, primarily at the corporate level.
"I want to thank all of the impacted Li-Cycle team members, as they played a key role in helping us work towards our vision of creating a more sustainable lithium-ion battery supply chain," Kochhar said.
"Although our Cash Preservation Plan is essential to position Li-Cycle for future success, we have deep appreciation and gratitude for their high-quality work and contributions and will provide the impacted Li-Cycle team members with support through a period of transition."
The redundancies are expected to incur total charges of approximately $8.3 million, with majority to be incurred as cash severance payments over the next 12 months.
The move, however, will also generate approximately $10 million in payroll and benefit cost savings annually, according to the organisation.
The reduction to the company's size will also see changes in its leadership board, particularly with the departure of two executives.
Debbie Simpson, Li-Cycle's chief financial officer, will be leaving the organisation to "pursue new opportunities."
Craig Cunningham has been named interim chief financial officer, but Simpson is expected to remain with the team until May 31, 2024, to support a smooth transition.
Richard Storrie, the company's regional president for Europe, Middle East, and Africa, will also be leaving the organisation as it shifts to a centralised organisational model.
Storrie will remain until May 31, 2024, to ensure a smooth transition.
"We would like to extend our sincere thanks to Ms. Simpson and Mr. Storrie for their dedication and valuable contributions to the company. We wish them the very best in their future endeavours," Kochhar said.
Li-Cycle is a global lithium-ion battery resource recovery company established in 2016. It recovers critical battery-grade materials to create a domestic closed-loop battery supply chain.
