Lion Electric announces 300 more layoffs, driving stock into the tank

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MONTREAL - Lion Electric Co. says it is laying off hundreds more workers as part of a plan to staunch its financial losses.

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Hey there, time traveller!
This article was published 31/07/2024 (796 days ago), so information in it may no longer be current.

MONTREAL – Lion Electric Co. says it is laying off hundreds more workers as part of a plan to staunch its financial losses.

The announcement sent the electric bus company’s shares into a tailspin, leaving them a penny stock by day’s end. The share price fell by 22 cents or more than 18 per cent to 98 cents when markets closed Wednesday — far below highs that topped $24 in mid-2021.

Lion Electric said some 300 employees would be let go in the coming days in a 30 per cent cut to its workforce.It expected most of the layoffs to be temporary.

The Lion Electric Company logo is seen outside their assembly plant in Saint-Jerome, Que., Monday, Aug. 21 2023. THE CANADIAN PRESS/Christinne Muschi
The Lion Electric Company logo is seen outside their assembly plant in Saint-Jerome, Que., Monday, Aug. 21 2023. THE CANADIAN PRESS/Christinne Muschi

The company previously laid off about 220 employees in a pair of announcements in February and April.

The Montreal-based outfit said the layoffs were part of a plan to better align its costs with current demand. The plan also involves ramping down production of electric trucks, creating a new product line to sell its battery packs to third parties and potentially leasing out a big chunk of its plant in Joliet, Ill.

The announcement came as the company reported net losses that ballooned 63 per cent to US$19.3 million in the second quarter and a 48 per cent drop in revenue to US$30.3 million compared with the year before.

In the three months ended June 30, Lion Electric said it delivered 101 vehicles — a drop of nearly 50 per cent year-over-year — and a diluted loss of nine cents per share versus a loss of five cents per share a year earlier, beating analysts expectations.

This report by The Canadian Press was first published July 31, 2024.

Companies in this story: (TSX:LEV)

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