Ballard Power announces global corporate restructuring

Ballard Power announced a global corporate restructuring to reduce corporate spending and in order to maintain balance sheet strength amid a slowdown in hydrogen infrastructure development and delayed fuel cell adoption. Ballard expects the restructuring measures to impact global operations, yielding annualized total operating expense savings in excess of 30%, with a substantial part of the annualized savings being realized in 2025. The scope of reduction measures include a reduction in workforce, a rationalization in product development programs, operational consolidation, reduction in capital expenditures, and certain working capital improvement initiatives. Cost reduction measures are not expected to impact product delivery and program execution required to fulfill customer commitments. The company expects to book a restructuring charge in Q3 2024. The company had $678M of cash and cash equivalents as of June 30. The company reiterates its 2024 total operating expense guidance of $145M-$165M and $25M-$40M for Capital Expenditures. As part of the restructuring, Paul Dobson and Mark Biznek will be departing as CFO and COO, respectively. Dobson will be succeeded by Kate Igbalode as new CFO effective immediately. Biznek will be succeeded by Lee Sweetland as new COO effective at the end of 2024. Kate Igbalode was previously serving as Ballard’s VP Corporate Finance & Strategy. Prior to joining Ballard in 2021, she most recently acted as a Director of Finance with Suncor Energy. Sweetland was previously appointed SVP and Chief Transformation Officer in January 2024. Sweetland joined Ballard in 2018. Prior to Ballard, Sweetland served as Manufacturing Technology Director in the New Markets sector of Johnson Matthey PLC, UK.