Lion Electric lays off hundreds as financial crisis looms
- Lion Electric lays off 400 workers and stops production at its Illinois plant.
- The company has had three rounds of layoffs in 2024, totaling about 520 jobs.
- The two-week lender extension may give Lion Electric time to explore future business options.
In Quebec, Canada, the electric bus manufacturer Lion Electric announced a temporary layoff of 400 employees on Sunday, December 1, 2024. This decision comes after the company secured a two-week extension from its lenders on a loan and credit agreement, granting them until December 16 to reassess their financial strategies. The need for layoffs is part of an ongoing struggle within the electric vehicle sector in the province. Previously, in 2024, Lion Electric had carried out three additional rounds of layoffs affecting nearly 520 jobs. This indicates a troubling trend as the electric vehicle industry faces significant challenges, impacting companies' operations and workforce stability. Lion Electric, based in St-Jérôme, Quebec, reported a net loss of US$33.9 million for the third quarter of 2024, which raises serious questions about the viability of the business. The company stated that its 300 remaining employees will continue to focus on bus manufacturing, sales, and delivery while they explore options to improve their financial standing. The two-week extension allows the company time to consider various alternatives, including the potential sale of the business or seeking creditor protection. However, the uncertainty of these options leaves many employees concerned about their futures. The union representing the workers expressed cautious optimism regarding the extension, noting that it demonstrates serious discussions are taking place to save the company. Despite this, union representatives like Éric Rancourt emphasized the anxiety and worry that employees are experiencing during these difficult times. The situation reflects broader issues within Quebec’s electric vehicle industry, which is facing a tough environment filled with various headwinds that could affect employment across the sector. As Lion Electric navigates this challenging period, the focus remains on how they can stabilize their operations and ensure the continuity of jobs. However, without a definitive plan or assurance of success, the employees' concerns persist amid the ongoing financial strain faced by the company and the industry at large.