August 1, 2025: EnerSys is to cut 575 non-production jobs as part of a restructuring plan unveiled on July 22 aimed at securing $80 million in annualized savings.
Shawn O’Connell, who succeeded David Shaffer as president and CEO this May, said the “difficult” decision to axe jobs — primarily in corporate and management positions — was a necessary move to stay competitive.
The cuts represent 11% of the US-based battery manufacturing giant’s non-production global workforce.
O’Connell said EnerSys had spent the past six months listening, evaluating, and testing how the firm could best serve its customers, deliver stronger returns, and build a more agile organization.
“EnerSys is powered by an incredible team, and this decision in no way reflects the dedication or contributions of the individuals impacted,” he said.
“We are committed to supporting our employees through this transition with care and respect.”
EnerSys expects the shake-up to be “substantially complete” by the end of the second quarter of fiscal 2026, subject to local law requirements.
Combined with other “non-headcount-related actions”, these changes are expected to result in about $80 million in annualized savings starting in fiscal 2026.
EnerSys said the estimate comprises around $70 million in savings, representing a reduction of over 10% of the company’s fiscal 2025 operating expenses, as well as an estimated $10 million reduction in the cost of goods sold.
The firm expects to realize about $30 million-$35 million of savings in fiscal 2026, with material benefits beginning in the third fiscal quarter.
Estimated savings exclude one-time charges related to the restructuring, which are anticipated in the range of $15 million-$20 million, with the majority occurring in the second and third quarter of fiscal 2026, primarily for severance and other related costs.
EnerSys said the moves are part of a broader strategic plan that will be discussed during its fiscal first quarter 2026 earnings report, which is scheduled to be published after market close on August 6. This will be followed by the firm’s earnings conference call scheduled for August 7.
The company revealed last May that its stock lost and regained $900 million in the marketplace over a three-month period amid the recent flurry of US trade tariff announcements.
That came after EnerSys announced the closure of its flooded lead acid battery manufacturing facility in Monterrey, Mexico and a production switch to its existing Kentucky plant, while expanding capacity in the US and Europe.
However, in June, the company formally opened its expanded US Sumter plant, as it expands investment in Thin Plate Pure Lead, flooded lead and lithium ion batteries.
