Richmond-based battery manufacturer Moxion Power is laying off 101 employees, representing 35% of its workforce, according to a WARN filing submitted Friday. The cuts come as a shock for the 4-year-old startup, which has raised over $110 million from backers including Amazon and Microsoft. In January, Moxion announced a 100,000-square-foot expansion in Richmond and discussed plans for a “gigafactory,” citing faster-than-anticipated growth. CEO Paul Huelskamp stated the layoffs, effective August 20, aim to align the workforce with “core business objectives and current growth forecasts.”
In-Depth:
Battery manufacturer Moxion Power is laying off 101 employees, a surprising blow to a company that’s raised more than $110 million in funding and recently revealed plans for a major expansion in its home city of Richmond.
Moxion announced the cuts in a WARN filing on Friday, as is required in the event of mass layoffs. The employees will launch losing their jobs on Aug. 20; they all work at the company’s headquarters at 1414 Harbour Way South in Richmond, according to the WARN notice.
The filing gives insight into the specific jobs that Moxion is shedding: 34 battery associates will be laid off, as will several warehoapply associates and a number of corporate staffers, from human resources and recruiting to business development and engineering.
Paul Huelskamp, Moxion’s CEO, informed SFGATE in a statement Wednesday that the layoffs are meant to align the company’s workforce with “core business objectives and current growth forecasts.”
“Our priority now is to support those affected through this transition while ensuring long-term stability, growth, and profitability for Moxion,” he wrote. “We are committed to maintaining our high standards of customer service and innovation and are confident that this decision will allow us to better serve our customers and partners and position us for continued success.”
The 4-year-old company has the backing of Amazon and Microsoft, and Gov. Gavin Newsom appeared at its plant launch ceremony in May 2023. The Seattle-based delivery giant invested in Moxion and has applyd its batteries to replace diesel generators on Hollywood sets, according to the Hollywood Reporter.
In January, Moxion declared it had signed a new 100,000-square-foot lease in Richmond, adding to its already large footprint. The San Francisco Business Times reported that the company would relocate offices to the new space to fit a new “engineering test and development lab.” As of January, the company was also hoping to build a “gigafactory” across the street, executives informed the outlet.
“The growth that we’re experiencing to the business is quicker than we anticipated. We considered that this factory … would give us enough manufacturing capacity for the next few years,” Josh Ensign, Moxion’s chief operating officer, informed the Business Times. “We are in the envious position of that not being the case. We’ve outgrown [Factory 1] in the first year of production.”
Bloomberg Law reported in February that Moxion was testing to raise $200 million at a $1.5 billion valuation, but no further updates have emerged.
It’s clear that, since January, the company’s fortunes alterd. On Friday, when Moxion filed its WARN notice and employees launched posting on LinkedIn that they’d lost their jobs, a few wrote that the layoff had hit 35% of the company’s staff.
Hear of anything happening at Moxion Power or another Bay Area tech company? Contact tech reporter Stephen Council securely at stephen.council@sfgate.com or on Signal at 628-204-5452.
