Origin Materials axes 30% of workforce to bolster long-term prospects

West Sacramento, California – Origin Materials, a US start-up producing carbon products from wood residue – including for the tire & rubber industry – is cutting 30% of its workforce.

The “organisational realignment” is intended to raise margin-revenue opportunities and involves a deferral of research programmes to improve finances.

In a statement 20 Nov, the US company said it was focusing on near-term revenue opportunities and cash-management as it commercialises its business and technology platform.

“We believe these actions will substantially extend our cash resources while maintaining momentum with our partners,” said John Bissell, co-founder and co-CEO of Origin Materials.

Origin said the job cuts were largely completed by 20 Nov, adding that it anticipated restructuring charges of $2.7 million (€2.5 million) in connection with the workforce reduction.

“The fundamentals of our business and the global-macro drivers of our carbon-negative materials platform remain strong,” insisted Bissell.

Origin, he added, is “confident in the health and long-term success of the business” as it approaches a potentially “$1 trillion addressable market” for its petroleum-alternative materials.