Plug Power Plans Layoffs, Optimize Supply Chain To Cut Costs By $75M Annually

Plug Power, Inc. PLUG shares are trading higher on Wednesday.

The company plans to reduce its annual operational expenses by over $75 million.

Plug will undertake strategic adjustments to its staffing levels. The company did not disclose any specific details.

Affected employees, however, will be supported with comprehensive severance packages and resources for career transition.

The company also plans consolidation of operations, intended to optimize the allocation of resources and streamline processes. 

In addition to operational and workforce adjustment strategies, Plug will implement a series of additional measures to further reduce expenses. These will include optimizing supply chain management, curtailing discretionary spending, and leveraging automation and digital technologies to enhance operational efficiency.

“The implementation of this strategic plan is essential for Plug to sustain its market leadership and continue to provide innovative renewable energy solutions,” said Andy Marsh, CEO of Plug Power.

On February 12, the company said it delivered several liquid hydrogen portable refuelers to transit agencies and trucking fleet customers.

Plug began production of liquid green hydrogen at its Georgia plant on January 23, 2024. At 15 TPD, this is the largest liquid green hydrogen plant in the U.S. market.

In Europe, Plug signed a contract to deliver a Basic Engineering and Design Package (BEDP) for a 500 megawatt (M.W.) electrolyzer project, last month.

Price Action: PLUG shares are trading higher by 2.10% to $4.25 on the last check Wednesday.