11:03 AM EST, 11/15/2024 (MT Newswires) -- FuelCell Energy ( FCEL ) said Friday it will cut 17% of its workforce as part of a global restructuring plan aimed at reducing costs amid slower-than-expected clean energy investments.

The restructuring plan, which affects operations in the US, Canada and Germany, aims to protect the fuel-cell technology company's competitive position and sharpen its focus on core technologies. FuelCell said it expects to reduce operating costs by roughly 15% year over year in fiscal 2025. The layoffs announced on Friday include staff let go in September, the company said.

FuelCell reduced its workforce by 4% in September, Chief Financial Officer Michael Bishop told analysts in a conference call at the time to discuss fiscal third-quarter results.

The company will cut back on product development spending as part of the restructuring plan.

"We have always known that the energy transition would not be linear, and we have built a portfolio of products and applications that allow FuelCell Energy ( FCEL ) to pivot when necessary," Chief Executive Jason Few said in the Friday statement. "The steps announced today enable us to navigate the current market while maintaining the flexibility to capture tailwinds."

The layoffs do not impact FuelCell Energy's ( FCEL ) carbonate manufacturing capabilities at its Connecticut facility, where it plans to expand its molten carbonate technology to offer distributed power solutions.

The restructuring move will allow FuelCell to prioritize technologies to "reflect changing market opportunities," the company said. It plans to continue to work on strategies for carbon dioxide recovery and sees potential for its solid oxide technology to deliver both electrolysis and power generation.

Power shortages in grids and high voltage transmission demand will likely be potential growth drivers, according to Few.

"Additional power demand opportunities are driven by data centers, (artificial intelligence), cryptocurrency growth, more resilient and reliable grids, and carbon recovery and capture," the CEO said.

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