Many companies have been forced to reduce their staff, with some even being forced to shut down operations as they can no longer afford to stay afloat.
Moxion Power is one of those companies. Despite having raised $110 million and having expansion plans, it began laying off employees a few months ago and is now at risk of having to shut down entirely.
Moxion Power Is a Tech Company
Moxion Power is a tech company based in Richmond, California. It is a mobile battery startup that has been funded by the likes of Amazon and Microsoft, so it would be expected to be performing well.
The company developed mobile batteries designed to replace diesel generators, and everything seemed to be going well until a few months ago.
Staff Were Furloughed
Moxion Power began just four years ago as a startup, and while no business is smooth sailing, the business hasn’t been having a good time of it, especially in the last few months.
Just a few weeks ago, most of its staff received word that they would be furloughed. This alone is a worrying time for any employee, but what’s even worse is that the company was believed to be at risk of shutting down.
Raising $110 Million in Funding
Over the last year or so, the company has raised $110 million in funding. It had even promised that this money would be used to fund a massive office expansion next to its headquarters.
This is why everyone was so shocked to hear the news of what was going on at Moxion as everything seemed to be going so well for the brand. Many wondered what had gone wrong.
Construction Slowed Down
With the expansion plans still in place, construction was ongoing where the company was to have its office expansion. This still went ahead despite many of Moxion’s staff being furloughed.
However, as the weeks passed, the construction slowed down. Although it hadn’t stopped completely, passers-by noticed the number of workers at the construction site was dwindling.
Challenges Among Rapid Growth
One of the main issues the company was facing had to do with finances. Despite having raised $110 million in 2022, it faced funding and investor challenges. It didn’t help that they were rapidly growing at the time and couldn’t keep up.
As they didn’t have the money to keep up with the growth of the company and demand from customers, they had to make some drastic changes to operations, which were initially hoped to save the company.
Last Minute Disappointment
Over the last few months, the company has desperately been trying to save itself by reaching out to investors, hoping they will invest more money into the company to help them keep afloat.
While things were looking like they might work out, Moxion was let down at the last minute. This left them unable to secure the money, and it has recently come out that the company has had to close down.
The Rest of Its Employees Have Been Laid Off
Since the announcement that Moxion Power would be shutting down, its remaining 248 employees have been laid off. This does not include the employees put on furlough before this announcement.
The C-suite, seven vice presidents, 10 directors, 18 battery associates, engineers, managers and technicians were among those laid off. However, many are now worried that they won’t receive severance pay.
Discussions Are Ongoing
Due to the severity of the situation, discussions are ongoing regarding the many issues the company is now facing, including whether employees will receive severance pay and what this amount will look like.
The company is now being handed over to a third party to sell Moxion’s assets. It’s unknown when these discussions will be sorted out, so employees could be facing quite the wait until they find out what is happening.
Moxion Was Still Advertising Jobs
Despite a difficult financial period, Moxion was still advertising open job positions. When reports were rife of the company shutting down, the job advertisements seemed to suggest that everything might be alright.
Not only does the news of the company shutting down greatly affect its employees, but it also disappoints those who had applied for the open positions, especially with the current job climate proving challenging.
What Went Wrong?
There can be various reasons for a company having to shut down. Sometimes it is just something that happens. In other cases, everything can look fine on the surface while not looking anywhere near as good behind the scenes.
Most of this is due to Moxion’s mismanaged growth, which can happen if the growth is there without the money. It also failed to solve technical problems before scaling up production, relying too much on its early customers rather than finding the right product-market fit.
The Market for Portable Renewable Power
Those involved in the company still believe there is a market for portable renewable power. There is hope that someone can take the technology used by Moxion and put it back on the market.
The hope is that this will help fill a gap left in the market while also making it more successful and lasting. Only time will tell whether this is able to happen, and if it does, what that will look like.
