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Key Takeaways
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Plug Power announced a further restructuring as the "green hydrogen" producer tries to boost its financial position.
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The new plan, "Project Quantum Leap," includes layoffs and other cutbacks.
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CEO Andy Marsh said more steps are needed "based on market dynamics."
Plug Power (PLUG) shares pulled back from six-year lows Tuesday but said it needs to take further restructuring steps to boost its financial condition, including more layoffs.
The "green hydrogen" producer said that because of "ongoing market conditions" and other factors, it "has determined it was prudent to take additional measures to optimize its operational footprint, resources, and ongoing expenses."
Plug Power said those measures would include "additional reductions in the workforce over the coming weeks, furthering its rooftop facility consolidations, additional reductions in discretionary spending, additional reduction and leveraging of inventory, and limiting capital expenditures to near-term critical requirements."
'Project Quantum Leap' Aims to Improve Margins, Cash Flow
The company is calling the effort "Project Quantum Leap," adding that the moves are expected to "further improve margins and cash flows, and accelerate the path to profitability."
CEO Andy Marsh noted that despite steps taken during the year to shore up Plug's finances, "it is clear based on market dynamics that we have to make additional strides."
Plug Power shares sank nearly 9% as markets opened Tuesday but reversed course and recently were up 4.5%. Still, they have lost about 60% of their value in the last year.
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