Materials technology company Origin Materials is reorganizing its business, including significant layoffs, and shifting resources toward commercialization of its PET caps, in which interest remains strong, the CEO says.
Origin did not disclose how many employees were affected, but noted in an SEC filing that the reorganization would result in a reduction of approximately 32% of the company’s global workforce.
In a press release, the company said its 1881 PET pressurized water caps were scheduled for delivery to “multiple marquee global beverage brands” for continued acceptance testing in first-quarter 2026. The company noted that it expected to continue acquiring premium water customers throughout this year, and CEO John Bissell said financial guidance would become more clear as Origin finalizes offtake agreements.
As part of cost-containment measures, Origin will limit the build-out of its CapFormer production to the six lines already fully procured and projected to be installed by the end of 2026. In addition, the company will defer non-beverage cap format development to 2027.
“We are closer now than ever before to successful delivery of our PET caps to multiple world-class beverage brands,” Bissell said. “It has taken us longer to reach this point than expected, which we believe has not had a negative impact on the strong interest in our product but has negatively impacted our stock price and consumed more resources than projected.”
Bissell added: “Our prospective customers consume billions of caps per year and they continue to expect to begin converting to our PET caps upon successful acceptance testing, which is underway. Due to the timing variability of those processes, we are limiting our forward financial guidance to the aforementioned expectation of reaching Adjusted EBITDA run-rate breakeven in 2027.”
Last August Origin’s caps first reached stores on bottles of Power Hydration, a new alkaline beverage brand.
Also in August Origin Materials and Berlin Packaging reached a supply deal for the caps, and placed its first order in October 2025.
Origin Materials also is indefinitely suspending development of its furanics platform, which focuses on intermediate chemicals made from biomass.
The company declined to provide further comment.
