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Piedmont Lithium (NASDAQ:PLL) layoffs are a hot topic among traders on Tuesday as the lithium exploration and development company cuts jobs.
A press release from Piedmont Lithium notes that the company recently completed a workforce reduction of 27% of its corporate employees. The company is taking this action to reduce operating costs.
Piedmont Lithium says that these layoffs will result in annual savings of $10 million. It’s taking other actions to reduce operating costs that should be completed in the first quarter of 2024.
Piedmont Lithium president and CEO Keith Phillips said the following about the layoffs.
“These cost reduction actions, while difficult, are necessary to position the Company for the long-term. Lithium prices have fallen sharply, and the market consensus is currently negative. However, lithium has been a cyclical business over the past decade with trough markets in pricing generally followed by new record highs.”
Piedmont Lithium Joins Layoffs Trend
Piedmont Lithium isn’t the only lithium mining company to announce layoffs recently. Albemarle (NYSE:ALB) also announced job cuts last month. In both cases, these headcount reductions were due to the falling price of lithium as demand for electric vehicles (EVs) continues to weaken.
This comes as a tough economy has been weighing on companies for over a year now. Increased inflation and interest rates are both factors affecting companies’ business decisions.
PLL stock is down slightly as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2024/02/piedmont-lithium-layoffs-2024-what-to-know-about-the-latest-pll-job-cuts/.
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