READING, PA — EnerSys (NYSE: ENS) announced a significant workforce reduction this week, eliminating approximately 575 corporate and management positions—about 11% of its non-production global workforce—as part of a sweeping restructuring initiative under new leadership.
The move is aimed at streamlining operations, improving organizational agility, and aligning resources with the company’s evolving strategic priorities. The layoffs are focused primarily on administrative and managerial roles and are expected to be largely completed by the end of the second quarter of fiscal 2026, subject to local regulations.
“Today’s actions, while difficult, are necessary for EnerSys to remain competitive in our markets,” said President and CEO Shawn O’Connell. “We’ve spent the past six months listening, evaluating, and testing how we can best serve our customers, deliver stronger returns, and build a more agile organization.”
EnerSys estimates the restructuring will yield approximately $80 million in annualized cost savings starting in fiscal 2026. This includes about $70 million in reduced operating expenses—over 10% of the company’s fiscal 2025 OPEX—and an additional $10 million in savings from cost of goods sold. The company expects to capture $30 million to $35 million of those savings during fiscal 2026, with meaningful impact beginning in the third quarter.
Restructuring-related charges are projected to fall between $15 million and $20 million, primarily tied to severance and transition costs. Most of these charges are expected to be recognized in the second and third quarters of fiscal 2026.
O’Connell emphasized that the decision does not reflect the performance or commitment of affected employees. “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.”
The announcement is part of a broader strategic roadmap that EnerSys will detail during its fiscal first-quarter earnings release on August 6, followed by a conference call with investors on August 7.
The restructuring comes as EnerSys seeks to reposition itself amid shifting market demands and to boost shareholder value through operational efficiencies.
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