Log9 Materials Lays Off 115 Contractual Employees

Log9 Materials Lays Off 115 Contractual Employees

Log9 Materials not only delayed the salary of its employees for January 2024 but also laid off 115 contractual employees. Pankaj Sharma, Co-founder of Log9 Materials, confirmed the development in the startup news and said that the company let go of 115 contractual workers in a stepwise manner. However, Sharma did not define the timeline for the same and assigned this layoff to automation. Which reduces the manual workforce at the lithium-ion battery manufacturing startup.

He said that there is a lot of automation in the company. Since November, we commissioned automation lines, due to which the dependence on manual workers has gone down. Now we can prepare lots of batteries as machines can make those batteries for us. The startup already cut off payments to its employees due to the retrenchment exercise.

He also added that the reason behind the late payments of employees for January 2024 is the cash flow disruption due to the lower production. Also, the first month of the year always shows a reduction in vehicle sales because many customers want to take new year’s vehicles. With this, two networks come into effect, one is that we are selling batteries in less amount and the OEMs were anyway selling fewer vehicles. 

According to him, 90% of the salary amount has already been disturbed. However, it's going to change and there will be no destruction seen from February 2024 onwards, he assumed. Log9 Materials, which manufactures batteries for electric vehicles (EVs) and other energy storage solutions, was founded in 2015 by Sharma, Akshay Singhal and Kartik Hajela. The competitors of the startup are Ather Energy, Hero Electric-backed Exponent Energy, etc. 

In January 2023, the startup raised nearly $90 Mn, including a $40 Mn Series B funding round invested by Petronas Ventures and Amara Raja Batteries. Due to this laid-off of employees, Log9 has joined the list of Indian startups to have let go of employees in the past two years due to an adverse funding environment and the immense adoption of AI-led automation by the company. 

YFS Shares Its Opinion on Log9 Materials’ Employee Layoff Decision

The employee layoff decision by Log9 Materials is a shift towards the growing adoption of AI technologies to streamline the process. This startup news India may not be good for employees wishing to make a career in battery manufacturing companies but will put the latter in good stead.