Dutch electric bus manufacturer Ebusco announced the layoff of 102 employees, representing 16.5% of its workforce, as part of a broader restructuring effort aimed at improving financial performance. The company, which has faced significant challenges in recent months, is also streamlining its management structure to align with its transition to an Original Equipment Designer (OED) model.
The layoffs, affecting primarily production and warehouse roles, will take place during the first quarter of 2025. Ebusco has applied to the Dutch Employee Insurance Agency (UWV) and informed trade unions, ensuring a social plan is in place for affected workers. CEO Christian Schreyer acknowledged the difficulties of the decision, stating, āScaling down the in-house production in the Netherlands is an important part of our strategy and these measures are aimed at right-sizing the company and reinforcing Ebuscoās core strengths in sales, design, and engineering.ā Schreyer noted that expediting the process provides clarity for employees and stakeholders in a shorter timeframe.
Ebusco is pivoting its operations to focus on designing and developing electric buses while scaling back in-house manufacturing. The company plans to maintain flexibility by continuing to build some buses internally while exploring external manufacturing options. This shift aligns with Ebuscoās Turnaround Plan, which seeks to address delays and financial setbacks, including an EBITDA loss of over ā¬60 million in the first half of 2024 and customer cancellations due to delivery delays.
The restructuring also includes significant changes to Ebuscoās leadership. In December, the company dissolved its Executive Committee, reducing hierarchical layers and streamlining decision-making. Key roles, such as Chief Technology Officer (CTO), Chief Human Resources Officer (CHRO), and Chief Commercial Officer (CCO), were eliminated, with Schreyer assuming CHRO responsibilities.
The Chief Operating Officer (COO) role is now pivotal, overseeing the entire operational process, from sales to aftersales. However, former COO Roald Dogge stepped down at the end of 2024, with his role taken over by Michel van Maanen. Van Maanen, who previously held leadership roles at Ebusco and Australian electric van manufacturer Nexport, brings experience in contract manufacturing models similar to Ebuscoās evolving approach.
Ebuscoās financial difficulties stem from delayed bus deliveries, leading to customer cancellations and an inability to meet demand despite having over 1,600 vehicles on order. Leadership changes have been frequent, with Schreyer taking over as sole CEO in September 2024 following co-founder Peter Bijveldsā departure. In November, the company secured capital to stabilize operations and support its ongoing transformation.
