Renewcell, a Swedish startup that recycles textile waste, has announced plans to negotiate with relevant unions to restructure the organization to improve efficiency while maintaining a focus on sales and marketing to major clothing brands.

The planned restructuring will result in a headcount reduction of approximately 25% (~30 employees) and annual savings of approximately SEK 35 million (~USD 3.4 million) in reduced personnel and other operating costs.

Analyst QuickTake: The restructuring announcement comes after Renewcell's strategic review in November to secure additional funding, following lower-than-expected sales in Q3 and subdued sales to fiber producers in October . Despite previously seeking short-term financing in December 2023, securing SEK 100 million (~USD 11.4 million) from its major shareholders, H&M Fashion AB and Girincubator AB, as well as existing lenders, Renewcell has now concluded that a comprehensive restructuring is the definitive course of action to address its financial concerns.