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The Lion Electric Company has announced temporary layoffs of approximately 150 employees in Canada and the United States. This reduction is part of the company’s restructuring efforts under the Companies’ Creditors Arrangement Act (CCAA) proceedings. Following the layoffs, the company will retain around 160 employees focused on servicing and maintaining electric school buses and trucks.
Key Highlights:
- Temporary layoffs impact about 150 employees across all departments in Canada and the U.S.
- The reduction aligns with the terms of the debtor-in-possession (DIP) financing agreement.
- Remaining workforce will primarily focus on customer support for school buses and trucks.
- Proceedings under the CCAA include a sale and investment solicitation process (SISP) to support restructuring efforts.
The workforce reduction comes as part of Lion Electric’s strategy to meet the conditions of its DIP financing agreement. This agreement, backed by lenders under the company’s senior revolving credit arrangement, aims to fund the ongoing restructuring process and the SISP. These measures are intended to ensure the company’s operations can continue during its financial reorganization.
Earlier, on December 18, 2024, the Superior Court of Quebec (Commercial Division) issued an initial order granting Lion Electric and its subsidiaries protection under the CCAA. The court also approved the SISP for the company’s business and assets. Additional details and updates about Lion’s restructuring process are available on the monitor’s website at Deloitte’s Insolvency Page for Lion Electric.
About Lion Electric
Lion Electric is a North American leader in zero-emission transportation, manufacturing all-electric school buses and trucks. The company designs and assembles key vehicle components, including chassis, battery packs, truck cabins, and bus bodies.
Lion Electric is committed to innovation and sustainability, believing that a shift to electric vehicles significantly enhances societal and environmental well-being. Its shares trade under the symbol LEV on both the New York Stock Exchange and the Toronto Stock Exchange.
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