The Lion Electric Company will cut 120 jobs, mostly in Canada, the company announced Thursday.
Lion says most of the affected jobs are in overhead and product development functions. It says production will not be affected; the company still has 1,150 employees with more than 600 manufacturing positions.
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The company will also take internal measures to reduce costs, including in third-party inventory logistics, lease expenses, consulting, product development and professional fees. Lion says it expects to save around $40 million.
"Current market dyanmics, notably delays experienced with Canada's Zero-Emission Transit Fund, continue to adversely impact our school bus deliveries and forced us to further reduce our workforce," says Marc Bedard, CEO and founder of Lion. "We sincerely regret the impact of this decision on our valued employees. It is, however, crucial to rightsize our workforce to the current environment. We remain confident in our long-term growth and that of the industry and, keeping our focus on our profitability objectives and production requirements, we will continue to work tirelessly on the execution of our business plan."
