Lion Electric lays off more than 100 employees

Lion Electric's lithium-ion battery manufacturing plant in Mirabel, Que., on Thursday, Sept. 14, 2023. (Christinne Muschi/The Canadian Press)

Lion Electric announced on Friday that it would have to temporarily lay off some 150 workers in both Canada and the United States as part of its restructuring under the Companies' Creditors Arrangement Act (CCAA).

This latest downsizing at the Quebec-based manufacturer of school buses and electric trucks affects all departments.

In a press release, the company said it will now have about 160 employees who will focus on helping customers maintain their school buses and trucks.

Lion, which is experiencing significant financial difficulties, officially obtained protection from its creditors on Dec. 18, after its petition was approved by the Superior Court. The company said it had no choice but to downsize.

In 2024, Lion carried out four waves of layoffs that involved around 920 workers, the last one dating back to the beginning of December.

In recent years, the Saint-Jérôme-based company has received financial support from the governments of Quebec and Canada, the Fonds de solidarité FTQ and Fondaction, notably through loans. Many of the public funds will be at risk as part of the CCAA process.

This report by The Canadian Press was first published in French Jan. 3, 2025.