The company Lion Électrique, whose head office is located in Saint-Jérôme, Quebec, announced on Friday approximately 150 layoffs in Canada and the United States “in all departments of the company”.
As a result of this reduction in force, Lion will have approximately 160 employees who will primarily focus on helping its customers maintain school buses and trucks.
indicates the company in a press release.
The company goes on to indicate that it was required to implement this workforce reduction as part of its ongoing proceedings under the Companies’ Creditors Arrangement Act
announced on December 18.
In 2024, Lion carried out four waves of layoffs which involved approximately 920 workers, the last dating back to the beginning of December when 400 employees were laid off. That month, Lion stopped production at its factory in Illinois and sold its Mirabel innovation center for $50 million.
Fears for buses already in service
Around 1,300 electric school buses are already on the market, the majority in Quebec. The lack of parts or maintenance has caused the Federation of Bus Transporters to fear service disruptions.
So far, no buyer has come forward to buy this company in which the Quebec government has invested $177 million and Ottawa 30 million.
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In 2021, Ottawa and Quebec announced a joint investment in Lion.
Photo : - / Ivanoh Demers
Over the past four years, the company has lost 99% of its stock market value, going from a peak of US$33.48 per share on January 15, 2021, to US$0.084 today. It employed up to 1350 people.
Founded in 2008, Lion distinguished itself by building the first electric school bus in North America. According to some experts, Lion wanted to grow too quickly and should have focused its efforts on buses rather than simultaneously developing the truck market.
Lion Électrique is not the only company in this sector to be plunged into turmoil. British Columbia electric truck and bus maker Vicinity Motor Corp. is also being pursued by its creditors.
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