Burnaby’s Ballard Power Systems has announced a global restructuring plan to cut costs and strengthen its financial position. This move comes in response to slower progress in building hydrogen infrastructure and delays in fuel cell adoption.
The cost-cutting efforts will involve reducing the workforce, streamlining product development, consolidating operations, cutting capital expenses, and improving how the company manages its working capital. Despite these changes, the company does not expect any impact on product deliveries or meeting customer commitments.
“As discussed during our recent earnings call, in the context of a challenging macroeconomic and geopolitical outlook and amid protracted policy uncertainty, we see a multi-year push-out of the availability of low-cost, low carbon hydrogen and hydrogen refueling infrastructure. As this delay represents a significant headwind to our corporate growth plan, we are implementing a cost restructuring to moderate our investment intensity and pacing to better align with delayed market adoption,” said Mr. Randy MacEwen, Ballard President and CEO.
“We expect our restructuring measures to impact our global operations, yielding annualized total operating expense savings in excess of 30%, with a substantial part of the annualized savings being realized in 2025.”
Earlier this year Ballard signed a deal to supply 1,000 hydrogen fuel cell engines to Solaris Bus & Coach through 2027 for the European transit bus market. The order represented the largest order of fuel cell engines in Ballard’s history.
Leave a Reply