FuelCell Energy, Inc. (FCEL) announced on Friday a comprehensive restructuring plan for its operations across the U.S., Canada, and Germany. This initiative includes a 17% reduction in the company's workforce.
Importantly, the company emphasized that this workforce reduction will not affect its carbonate manufacturing capabilities at the Torrington, Connecticut site.
The restructuring strategy is designed to lower operating costs by 15% by 2025. It aims to reallocate resources to further the development of the company's core technologies, expand the production of Connecticut-manufactured molten carbonate technology, and cut expenditures related to product development, overhead, and various other costs.
The company anticipates that the non-recurring accounting charges associated with the workforce reduction will materialize in the fourth quarter of fiscal year 2024 and the first quarter of fiscal year 2025.
In pre-market trading, FuelCell's stock saw a significant rise of 20.97%, reaching $8.48 on the Nasdaq.
