Fuel cell maker Plug Power Inc. (NasdaqGM:PLUG) announced that it will cut 80 positions from its workforce of 380, in a restructuring effort that is expected to cost the company $6.4 million, according to information filed with the Securities and Exchange Commission.
The majority of the positions eliminated were located at the corporate headquarters. The reduction in force focuses primarily on streamlining general and administrative expenses, and sizing the organization to drive short-term revenue targets, the company said in a release.
Plug Power will pay $4.9 million of the restructuring costs by the end of 2008, with the remainder paid over the following three years.
The cutbacks are expected to reduce cash consumption and extend Plug Power’s funding by 12 to 18 months, allowing the company more time in which to build and demonstrate substantial market traction.
Commenting on the cost-cutting measures, Andy Marsh, president and CEO, stated, "We are structuring Plug Power for long-term success, moving from an engineering and technology company to one focused on sales and marketing of our products. The decisions and actions we are taking today will build on our core strengths and leadership in fuel cell technology to help create a profitable organization."
About Plug Power Inc.
Plug Power Inc., an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive, continuous and backup power products. The company is actively engaged with private and public customers in targeted markets throughout the world.
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