Li-Cycle announces 17% workforce reduction, CFO to step down

Li-Cycle “provided a business update regarding its organizational structure. As part of its previously disclosed ongoing comprehensive review and Cash Preservation Plan, which includes organizational right-sizing and right-shaping, the Company has made the strategic decision to transition from its regional management structure to a centralized model to better position the Company for future success and increase efficiencies. Tim Johnston, Executive Chair, will transition to the role of interim non-executive Board Chair, where he will provide leadership, support, guidance and strategic advice to the Company. Considering Glencore’s nomination rights associated with the recently closed strategic financing, the Nominating and Corporate Governance Committee of the Board will be considering changes to Company’s Board and Committee composition, expected to be made immediately following Li-Cycle’s next annual general meeting in May 2024. It is expected that these changes will include identifying an independent Board Chair. Conor Spollen, who has been with Li-Cycle since January 2022, has assumed the role of Chief Operating Officer. In this role, Mr. Spollen will be responsible for Li-Cycle’s global Spoke operations driving safety, productivity, and cost-efficiency. In addition to overseeing Spoke operations, following the completion of the technical and economic review of the Rochester Hub project, he will be responsible for project delivery and the planned operation of the Rochester Hub. Dawei Li, who has been with Li-Cycle since July 2021, has assumed the new role of Chief Commercial Officer. In his new role, Mr. Li will lead Li-Cycle’s global commercial function and consolidate the global team’s strategy and approach to continue building strong partnerships with key battery market players. He previously led Li-Cycle’s Asia-Pacific region and brings 20 years of experience in strategy and business development and leading growth in untapped markets to drive robust performance. With the changes to the centralized and reduced size of the organization, Debbie Simpson, Chief Financial Officer, will be leaving the Company to pursue new opportunities. In addition to the leadership changes, and as part of the Company’s Cash Preservation Plan and the change from a regional to a centralized management model, the Company is taking other steps to reduce its workforce, primarily at the corporate level. Overall, the Company expects to reduce approximately 60 positions, representing approximately 17% of the Company’s global workforce. The Company estimates that it will incur total charges of approximately $8.3 million in connection with the workforce reductions, with the majority of these costs to be incurred as cash severance payments over the next twelve months. These steps are expected to generate approximately $10 million in payroll and benefit cost savings on an annualized basis.”