Redwood Materials did reportedly cut about 5% of its workforce in November 2025, weeks after announcing a $350 million Series E. Bloomberg reported that the battery company eliminated dozens of jobs as it scaled back or refocused projects, while TechCrunch estimated the reduction at roughly 5% of about 1,200 employees. Redwood declined to comment specifically on the layoffs. The evidence points to a strategic reallocation toward grid-scale energy storage, not proof that the company was running out of cash.
What happened, and when?
| Date | Event |
|---|---|
| October 23, 2025 | Redwood announced a $350 million Series E led by Eclipse, with participation from Nvidia’s venture arm, NVentures. Redwood’s announcement said the capital would support energy storage, refining, materials production, engineering and operations. |
| November 25–26, 2025 | Bloomberg reported dozens of job cuts. TechCrunch estimated that the reduction was about 5% of a workforce of roughly 1,200. |
| January 28, 2026 | Redwood said the Series E reached a $425 million final close, above the $350 million initially announced. The company said Google joined existing investors. |
| April 21, 2026 | TechCrunch reported a separate restructuring affecting approximately 135 employees, or about 10% of staff. Its report linked the move to a sharper focus on energy storage. |
| April 23, 2026 | TechCrunch reported that COO Chris Lister retired amid the restructuring; Redwood confirmed the retirement. |
The November event and the April restructuring were separate workforce actions. “About 5%” is an estimate based on reported headcount, not an official count: 5% of 1,200 is approximately 60 people, but Bloomberg described the cuts only as “dozens,” and Redwood did not publish a precise figure.
Was the $350 million financing real?
Yes. Redwood officially announced the Series E on October 23, 2025. Eclipse led the round, and NVentures was identified as a new strategic investor. Redwood described the round as oversubscribed and said it would fund two connected business lines: critical battery materials and grid energy storage.
The financing later grew to $425 million in a final close. That means “$350 million raise” refers to the initial announcement, not a separate financing that was later replaced. The larger final total argues against a simple story in which Redwood raised money and immediately contracted because the financing had failed. It does not, by itself, establish profitability or financial health.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems#1 Best Overall
- IMPORTANT: RED 2-PIN CONNECTOR REQUIRED – This battery ONLY works with the red 2-pin connector shown in the product photos. Many ride-on toys use similar-looking connectors that are not compatible. Compare your connector carefully before purchasing.
- IMPORTANT: VERIFY BATTERY SIZE BEFORE PURCHASE – Battery dimensions are 5.9 x 2.5 x 3.9 inches (151 x 65 x 99 mm). Measure your existing battery and battery compartment before ordering. This battery may not fit all ride-on vehicles.
- HIGHER 9.5AH CAPACITY FOR LONGER PLAYTIME – Premium sealed lead acid battery provides extended runtime compared to many standard 7AH batteries while delivering reliable power for compatible ride-on vehicles.
- INCLUDES REPLACEABLE 40A FUSE HARNESS – Includes SafeAMP 12V 9.5AH SLA battery, red 2-pin connector harness, and replaceable 40-amp fuse for added protection and convenient installation.
- DESIGNED FOR COMPATIBLE 12V RIDE-ON VEHICLES – Intended as a replacement battery for ride-on toys using the red 2-pin connector and requiring a battery measuring approximately 151 x 65 x 99 mm.
What Redwood Materials actually does
Redwood was founded by JB Straubel, Tesla’s former chief technology officer. It is broader than a battery-recycling company. According to its company overview, Redwood recovers lithium, nickel, cobalt, copper, graphite and other materials from used batteries and manufacturing scrap, then processes materials for new battery production.
Its newer Redwood Energy operation evaluates used electric-vehicle battery packs for reuse in stationary storage before recycling them at the end of their useful life. The company therefore combines recycling, refining, battery-material production and energy-storage deployment.
Why energy storage became central
Redwood has presented stationary storage as a way to meet rising electricity demand from data centers, manufacturing and electrification while making use of batteries that are no longer ideal for vehicles. Its stated process is to collect packs, test their remaining performance, integrate suitable packs into modular systems and recycle them afterward.
Redwood says its Crusoe project in Nevada uses a 12-megawatt/63-megawatt-hour second-life battery microgrid for artificial-intelligence infrastructure and that it has more than one gigawatt-hour of reusable batteries in its deployment pipeline. Those figures are company claims, not independently audited market measurements. Redwood has also announced storage-related work with automakers, including General Motors. Its strategy and subsequent announcements are documented in the Redwood Energy overview.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteRank #2
- 【Compatibility】Support all Best Choice Products 12V round hole charging port Kids Electric Ride On Car, 12V Battery Charger for Children Ride On Toys Jeep Kid Trax Dynacraft Kids Jeep Car Mercedes-Benz Truck Audi Range Rove BMW I8 Kidzone Bumper Car Charger
- 【Safety Certification】Our 12V Battery Charger have passed Safety certified. Fast charging and provide overcharge protection system/short circuit/overload protection/overheat protection.
- 【AC Input /Output 】Input : 100V -240VAC 50/60Hz. /Output:12VDC 1000MA / 5 Ft Power Cable / 2.1mm x 5.5mm Center Positive Barrel Plug
- 【Smart LED light】 Red light when charging, Green light when full.
- 【After-Sales Service】We provide 1 year warranty service, and 3 month unconditional return. Please contact us with any questions or concerns
Why cut employees after raising capital?
Fundraising does not require a startup to keep every project, team or role. A new round can finance a pivot, consolidate overlapping programs, halt projects that no longer rank highly, or shift hiring toward a different set of technical and operating skills.
Bloomberg’s November report connected the cuts with scaling back some ambitious projects and refocusing on grid-scale batteries. Redwood’s funding announcement also made energy storage a central use of capital. In April 2026, TechCrunch reported that CEO JB Straubel told employees some parts of the company had expanded faster than necessary and that critical projects could be executed with a smaller, more focused team.
That is the best-supported interpretation: resource reallocation as Redwood changes its operating model. It is not a documented explanation for every position eliminated in November, and the company did not publicly identify which teams were affected.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do the layoffs prove Redwood was in financial trouble?
No. Public reporting establishes that layoffs occurred, that Redwood raised capital, and that the company was prioritizing energy storage. It does not disclose enough to independently assess revenue, cash burn, runway, profitability or the economics of individual projects.
The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Rank #3
- 100% compatible with all Power Wheels 12-Volt using the Gray Battery (NOT Compatible with Orange Top Battery)
- Connector will fit perfectly in Power Wheels charger and Power Wheels vehicle
- Dimensions: 151x65x99 mm / 5.9x2.5x3.9 in
- SLA Battery - 12V 9.5AH (Same specifications as original Fisher-Price battery)
- Connector with Replaceable 30 AMP Fuse included
- Established: reported November cuts, a $350 million initial Series E, a $425 million final close, and a larger April restructuring.
- Reasonable inference: Redwood was narrowing priorities and moving resources toward storage deployments.
- Not established: insolvency, imminent bankruptcy, a failed financing, or that weak electric-vehicle demand alone caused the cuts.
TechCrunch later reported Straubel saying the materials business was on its way to profitability. That remains a management statement rather than independently audited proof that Redwood was profitable.
What the later restructuring changes about the November story
The April 2026 reduction was approximately twice the size of the reported November percentage, affecting about 10% of employees. Treating the November cuts as the company’s only workforce action would therefore give an incomplete picture. The later executive departures, including Lister’s retirement, add organizational context but do not by themselves demonstrate a leadership crisis.
Redwood continued announcing storage and battery-lifecycle initiatives involving customers such as GM, Rivian and Crusoe through its news archive. Continued activity shows that the storage strategy remained active; it does not prove commercial profitability.
How to read the headline claim
“Redwood Materials cuts 5% after a $350 million raise” is a fair shorthand only when the qualifications remain attached. The 5% figure was reported, not company-confirmed; it describes an estimate based on roughly 1,200 employees; the cuts were reported in November after an October funding announcement; and the Series E ultimately reached $425 million. The most defensible reading is a venture-backed company changing direction and reallocating staff, with a later, larger restructuring confirming that the shift continued.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
