Restructure And Recharge: FuelCell Cuts Workforce, Plans To Reduce Operating Costs By 15% In 2025

FuelCell Energy, Inc. FCEL shares are trading higher after the company disclosed a corporate restructuring across the U.S., Canada, and Germany.

The goal is to reduce costs and focus on core technologies in response to slower-than-anticipated clean energy investments.

FuelCell Energy expects the restructuring to lower operating costs by approximately 15% in fiscal year 2025 compared to 2024.

Here’s the plan:

• Reduce the workforce by 17% (including actions taken in September)
• Slash spending on product development, overhead, and other expenses.
• Prioritize commercially available technologies to align with shifting market opportunities.
• Expand its Connecticut-made molten carbonate technology (no expected layoffs in Torrington)
• Support growing AI-driven data center demands
• Address grid deficiencies.
• Advance CO2 recovery for industrial uses
• Continue developing its joint carbon capture platform, including a demonstration at the Port of Rotterdam.
• Grow resources to support its growing South Korean customer base.

FuelCell CEO Jason Few said, “These tailwinds are strengthened by power shortages in grids, high voltage transmission needs, and delays in centralized power projects due to lengthy permitting processes, which our distributed energy platforms do not experience. Additional power demand opportunities are driven by data centers, AI, cryptocurrency growth, more resilient and reliable grids, and carbon recovery and capture.”

FCEL expects non-recurring charges from the restructuring in Q4 FY2024 and Q1 FY2025 and cash, restricted cash, and short-term investments to exceed $300 million as of Oct. 31.

Investors can gain exposure to the stock via Global X Hydrogen ETF HYDR.

Price Action: FuelCell shares are up 19.68% at $8.39 at the last check Friday.

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Image: Courtesy of FuelCell Energy