US-based A123 Systems announced last Monday that it is building a new headquarters but cutting jobs in the US.
The lithium battery firm said it will invest $40 million in a new, consolidated corporate headquarters, manufacturing centre, and engineering base on 32 acres in Novi, Michigan, despite somewhat volatile US market for electric vehicles.
As part of the consolidation, 200 manufacturing jobs are being cut—eliminating roughly a third of A123’s workforce in the state.
However, CEO Jason Forcier characterizes the restructuring as “positive” news indicative of the company’s continued growth overseas and Michigan’s status as a hub of engineering talent.
“We’re consolidating all of our Michigan operations in one place and doubling our engineering footprint,” Forcier says.
“Our payroll will actually be $10 million higher because we’re cutting low-paying, hourly manufacturing jobs while increasing engineering jobs that pay five times as much.”