The Lion Electric Company (LEV-T) has laid off approximately 150 more employees in Canada and the U.S. as it undergoes a sale and investment process as part of its restructuring.

The cuts leave Lion with approximately 160 staff members.

The Saint Jerome, Que.-based electric bus and truck maker announced Friday afternoon it made the “temporary” reductions across all its departments. Most of its remaining employees are focused on the maintenance and servicing of its vehicles.

Lion Electric made the latest dismissals as per the Companies' Creditors Arrangement Act, under which it filed for protection on Dec. 17. Lion Electric had defaulted on a credit agreement led by National Bank of Canada, and a loan agreement with Finalta Capital Fund, L.P. and a subsidiary of Caisse de dépôt et placement du Quebec.

Almost 1,300 Lion Electric employees have been temporarily laid off since late 2023, with approximately 970 of those occurring in 2024.

The firm is is exploring a sale and investment solicitation process to find potential buyers of its assets or investors to sustain the business.

Lion Electric’s debts and assets

The company floundered in 2023 and 2024, unable to stem heavy losses caused by slowing sales and delays in government funding programs.

It ran at a net loss of US$103.8 million in 2023. The woes persisted into 2024, when Lion Electric reported a net loss of US$74.9 million for the nine months ended Sept. 30, 2024, with US$26.3 million in cash and liabilities just under US$500 million, according to court documents.

In Q3 2024, revenue was US$30.6 million and delivered vehicles numbered 89, less than half of the US$80.3 million in revenue and 245 vehicles delivered the year prior.

Workforce reductions were made to cut losses during the period, most notably a 30 per cent slashing of its global workforce in July - approximately 300 employees.

“Ultimately . . . the significant amount of capital required to operate its business, as well as the significant debt-load and cash burn rate, Lion has been unable to be profitable as a business thus far,” its proposed monitor, Deloitte Restructuring Inc., stated in another court document.

Efforts to reduce debt include selling its innovation centre in Mirabel, Que. for $50 million.

Le Journal de Montréal reported Lion Electric’s investors including Mach Capital have considered forming a consortium to bail out the company.

An overview of its US$780.2 million in assets laid out by Deloitte include:

• accounts receivable;
• inventory of raw materials and finished vehicles and battery packs;
• research and development costs being amortized;
• and its property and equipment such as its factories in Saint Jerome and Joliet, Ill.

A solicitation letter will be distributed no later than Jan. 7, and an auction is scheduled to take place on the week of March 10 if needed, according to Deloitte.