Log9 Materials Implements Workforce Changes in Response to Automation

• ByStartupStory     |    February 26, 2024

Log9 Materials, a prominent player in the lithium-ion battery manufacturing sector for electric vehicles (EVs) and energy storage solutions, recently announced substantial workforce restructuring driven by increased automation within its operations.

The startup, founded in 2015 and backed by nearly USD 90 million in funding, confirmed the layoff of 115 contractual employees along with delayed salaries for its staff in January. Pankaj Sharma, Co-founder of Log9 Materials, explained the rationale behind these decisions in a recent media interview.

“We have introduced automation lines since November, which has significantly reduced the dependency on manual labor. This transition allows us to enhance production capacity without the same level of workforce requirement,” Sharma stated.

In addressing concerns about the impact on employees, Sharma emphasized the company’s commitment to responsible human resource management during organizational transitions. “Severance payments have been made to all affected employees, ensuring a fair and considerate approach,” he assured.

Regarding the delayed salaries, Sharma pointed to cash flow disruptions attributed to reduced production volumes, stemming from seasonal variations in vehicle sales. He confirmed that approximately 90 percent of the outstanding salary payments have already been disbursed, and he assured that salary cycles would remain uninterrupted starting from February.

Log9 Materials, founded by Pankaj Sharma, Akshay Singhal, and Kartik Hajela, continues to compete in the EV battery manufacturing sector alongside notable companies such as Ather Energy and Exponent Energy.

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