FuelCell Energy surges on restructuring plan to include 17% workforce cut
Contributor since / Followers
David McNew/Getty Images News
FuelCell Energy (NASDAQ:FCEL) +20.1% pre-market Friday after it unveiled a global restructuring plan that will include cutting 17% of its staff.
FuelCell (FCEL) said the plan aims to reduce total operating costs by 15% in 2025, realign resources toward advancing its core technologies, and protect its competitive position in an environment of slower than expected spending in clean energy.
Cost-cutting measures will include a 17% reduction in the total workforce – including reductions in September 2024 – as well as reduced spending on product development and overhead.
The company said in its latest annual report that it had 591 full- and part-time employees as of October 31, 2023; a 17% cut to that workforce would equal ~100 jobs.
The job cuts would not affect carbonate manufacturing capabilities at its Torrington, Connecticut, plant.
FuelCell (FCEL) said it expects to book charges related to the job cuts in Q4 2024 and Q1 2025, but did not provide specifics.
FuelCell (FCEL) shares have plunged 85.4% YTD.