Plug Power to cut jobs, among other moves meant to save $75 million a year

By Emily Bary

Plug Power did disclose the scale of layoffs but said the move will preserve its 'agility and innovation capacity'

Plug Power Inc. plans to eliminate jobs and take other cost-cutting measures through an initiative meant to save $75 million a year, the company said Wednesday.

The alternative energy company "will undertake strategic adjustments to its staffing levels," it said in a release. The cuts are "made in the interest of preserving the company's agility and innovation capacity." The company didn't disclose the scale of the layoffs in the release.

A Seaport Research analyst recently estimated that Plug Power (PLUG), which provides hydrogen fuel-cell technology, burned approximately $1.85 billion in cash last year. The company has been upfront about the importance of being cost-conscious, especially after it issued a going-concern warning late last year. Plug Power said in January that it might sell up to $1 billion in common stock.

See also: Plug Power's stock loses a bull with company seen in 'triage' mode

"Addressing the critical issue of cash management and resolving our going concern is now our foremost priority," Chief Executive Andy Marsh said during an investor call in January.

Plug Power's latest plan "encompasses a broad range of measures, including operational consolidation, strategic workforce adjustments and various other cost-saving actions," the company said in Wednesday's release.

The move to consolidate operations will let Plug Power "achieve economies of scale, eliminate redundancies and enhance productivity across its global operations," it continued.

Plug Power will also seek out new efficiencies in its supply chain, pull back on discretionary spending and lean into automation.

Shares of Plug Power were up more than 3% in premarket trading Wednesday.

The stock is up 21% over the past month, though it's down 74% on a 12-month basis.

-Emily Bary

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02-14-24 0739ET

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