Li-Cycle Layoffs: Restructuring and Leadership Changes

Li-Cycle Layoffs: Restructuring and Leadership Changes

What is the reason for Li-Cycle layoffs?

Li-Cycle, the battery recycler, is undergoing a significant restructuring, resulting in the layoff of 17% of its workforce globally, along with the departure of two executives. Ajay Kochhar, the President and CEO, stated that the company is shifting from a regional to a centralized management structure to better align with its focused priorities. This transition will involve approximately 60 job cuts, mostly at the corporate level.

Kochhar expressed gratitude to the affected team members for their contributions towards Li-Cycle’s vision of a sustainable lithium-ion battery supply chain. Despite the necessity of the Cash Preservation Plan for the company’s future success, support will be provided to the impacted employees during the transition period.

What are the financial implications of the Li-Cycle layoffs?

The layoffs are anticipated to result in charges of about $8.3 million, primarily in cash severance payments over the next year. However, Li-Cycle expects to achieve approximately $10 million in annual savings in payroll and benefits costs.

The restructuring also entails changes in leadership, with the departure of the chief financial officer, Debbie Simpson, and the regional president for Europe, Middle East, and Africa, Richard Storrie. Craig Cunningham will serve as interim CFO, while Simpson will remain until May 31, 2024, to facilitate a smooth transition. Similarly, Storrie will stay until the same date to ensure continuity.

Kochhar extended appreciation to Simpson and Storrie for their dedication and contributions to the company. Li-Cycle, founded in 2016, is a global leader in lithium-ion battery resource recovery, focusing on creating a closed-loop battery supply chain by recovering critical battery-grade materials.

Severance pay for Canadian Li-Cycle employees

In Canada, Li-Cycle employees who are not union members are eligible to receive their full severance pay if they lose their jobs due to downsizing or corporate restructuring. The severance package they receive can be influenced by various factors and may cover up to 24 months of pay. If employees do not receive their complete severance amount, they have the option to pursue compensation. It is advisable for individuals facing layoffs at Li-Cycle to seek legal advice to ensure they receive the compensation they are entitled to.

At Whitten & Lublin, we understand the difficulties that come with job loss or termination, recognizing it as a stressful experience. Our team of skilled employment lawyers is available to assist you in navigating the legal options available to you, ensuring that you receive the compensation you deserve. We encourage those impacted by recent layoffs in Canada to contact us for a consultation, which can be arranged through our online portal or by calling (416) 640-2667 today.