The cuts represent 30 per cent of the Quebec electric bus company’s workforce, and will affect staff across all departments in Canada and the U.S., the company said in a press release. Most of the layoffs will be temporary, the firm said. (The Logic)
Talking point: This is Lion’s fourth and biggest round of layoffs in less than a year. The company said the cuts would save it about US$25 million annually, “assuming that employees temporarily laid off are not re-hired.” It’s part of a plan to rein in losses, which includes adjusting truck manufacturing to lower-than-expected demand, selling its battery packs to third parties and potentially subleasing a portion of its Illinois facility. Lion’s revenue declined year over year from US$58 million to US$30.3 million in the quarter ended June 30, as vehicle deliveries dropped nearly in half. The company cited “continued delays and challenges” with Infrastructure Canada’s Zero-Emission Transportation Fund as a reason for the reduced deliveries. Lion’s stock declined 18.3 per cent and 17 per cent respectively on the Toronto and New York stock exchanges Wednesday. On the latter it’s at risk of being delisted for trading below $1 for a prolonged period.