Lithium-ion battery resource company Li-Cycle Holdings Corp (NYSE:LICY) said as part of its cash preservation plan, it will reduce its workforce at the corporate level.
Li-Cycle expects to reduce approximately 60 positions, representing approximately 17% of the company's global workforce.
The company will incur total charges of approximately $8.3 million in connection with the workforce reductions, with a major portion of the charges incurred will be in the form of cash severance payments over the next twelve months.
The above initiatives are expected to rake in about $10 million in payroll and benefit cost savings on an annualized basis.
The company said it is transitioning from its regional management structure to a centralized model to increase efficiencies.
Tim Johnston, Executive Chair, will transition to the role of interim non-executive Board Chair. The company expects to identify an independent Board Chair.
Li-Cycle said Debbie Simpson, Chief Financial Officer, will be leaving the company to pursue new opportunities. The company has appointed Craig Cunningham as interim Chief Financial Officer, effective immediately.
Conor Spollen, who has been with Li-Cycle since January 2022, has been appointed to the role of Chief Operating Officer (COO).
Dawei Li, who has been with Li-Cycle since July 2021, has assumed the new role of Chief Commercial Officer.
With the change to a centralized organization model, Richard Storrie will cease serving as the company's Regional President, Europe, Middle East and Africa (EMEA) to pursue other opportunities.
"We believe that a centralized model, and the consolidation of our operational and commercial teams, will increase efficiencies and facilitate cross-functional partnerships to enhance our planning process and ability to execute on our short- and long-term objectives," said President and CEO Ajay Kochhar.
Price Action: LICY shares are trading lower by 4.67% at $0.9025 in premarket on the last check Wednesday.