Origin Materials Announces Organizational Streamlining to Support Priority Initiatives
- Origin Materials is strategically realigning its focus to prioritize near-term revenue opportunities, reflecting a commitment to commercialize the business and deploy its technology platform. The company's confidence in the long-term success of its carbon-negative materials platform indicates a positive outlook for its sustainable alternatives to petroleum-based materials, tapping into a $1 trillion addressable market.
- The roughly 30% workforce reduction may impact employee morale and could potentially lead to a loss of valuable talent. The $2.7 million restructuring charge could also affect the company's short-term financial performance.
“Consistent with our previously announced focus on near-term revenue opportunities and cash management as we commercialize the business and deploy our technology platform, we have taken action to reduce certain expenses and reallocate resources,” said John Bissell, Co-Founder and Co-CEO of Origin Materials. “The changes we are implementing support our plan to execute priority initiatives representing high-margin, near-term opportunities, while deferring some research programs with strong, but longer-term economic impacts. We believe these actions will substantially extend our cash resources while maintaining momentum with our partners, who are committed to bringing Origin’s technology to market. This was a difficult decision that involves parting ways with many talented team members who have committed themselves to our mission. We are deeply appreciative of their contributions to Origin and will do our best to support them in future endeavors.”
Origin expects the workforce changes to be largely completed today, November 20, 2023. The Company anticipates that it will incur approximately
“The fundamentals of our business and the global macro drivers of our carbon-negative materials platform remain strong,” said Bissell. “We are confident in the health and long-term success of the business as we approach the
About Origin Materials
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For more information, visit www.originmaterials.com.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin Materials’ business strategy, estimated total addressable market, ability to enter new end-markets, ability to develop new product categories, commercial and operating plans, product development plans, statements regarding the percentage of employees that will be affected, the estimate and timing of the charges that will be incurred, the potential to streamline the Company’s operations and conserve its cash resources, the potential benefits of deferring development programs with longer-term economic impacts and accelerating higher-margin revenue opportunities, and ability to maintain momentum with our partners. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin Materials. These forward-looking statements are subject to a number of risks and uncertainties, including that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business as a result of outbreaks such as the COVID-19 pandemic, Russia’s military intervention in
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Source: Origin Materials, Inc.
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