Lion Electric Company (LEV, LEV.TO) announced on Friday a temporary workforce reduction, affecting approximately 150 employees across various departments in both Canada and the United States.
Post-reduction, the company will maintain a workforce of about 160 employees. These individuals will primarily be dedicated to supporting Lion's customers by focusing on the maintenance and servicing of school buses and trucks.
This decision was necessitated as part of the company's ongoing proceedings under the Companies' Creditors Arrangement Act. It aligns with the stipulations of the debtor-in-possession (DIP) financing provided by the lenders, which falls under the senior revolving credit agreement. The workforce reduction aims to facilitate the sale and investment solicitation process related to these proceedings, while also supporting the company's operations amidst its restructuring efforts.