08:15 AM EDT, 04/18/2024 (MT Newswires) -- The Lion Electric Company ( LEV ) , a manufacturer of all-electric urban vehicles, said Thursday that it will fire almost 10% of its workforce as part of cost-cutting measures to reduce operating expenses.

The workforce reduction combined with steps announced in November 2023 and February of this year are expected to result in annualized cost savings of about $40 million, the company said.

About 120 people, mostly Canada-based employees in overhead and product development functions, will be laid off. Following the workforce reduction, the company will have about 1,150 employees, including more than 600 in manufacturing jobs. The cuts won't impact production levels, the company said.

The company is taking other steps to reduce costs, including in areas such as third-party inventory logistics, lease expenses, consulting, product development and professional fees.