Plug Power to undertake additional reductions in workforce

The company states: “Despite the significant improvement in cash burn, the Company determined that the strategic actions to temper the investment pace on certain platforms, coupled with the fact that certain markets are developing slower than anticipated, collectively resulted in accounting conclusions to record varied non-cash impairments of certain long-lived and intangible assets. In addition, given ongoing market conditions and the Company’s decision to focus more on certain markets and temper the pace of investments on medium-term opportunities, the Company has determined it was prudent to take additional measures to optimize its operational footprint, resources, and ongoing expenses. The Company is calling these collective measures “Project Quantum Leap”. These measures are expected to 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 is targeted to reduce annual expenses in the range of $150M to $200M. We expect that taking these actions will further improve margins and cash flows, and accelerate the path to profitability. As Plug continues to drive innovation and expansion in the hydrogen economy, the Company remains focused on strengthening its financial foundation and executing its growth strategy with discipline and efficiency.”