Plug Announces Strategic Expense Reduction Plan to Save More Than $75 Million Annually
LATHAM, N.Y., Feb. 14, 2024 (GLOBE NEWSWIRE) — In a strategic move to enhance its financial performance and ensure long-term value creation in a competitive market, Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced a comprehensive initiative designed to significantly reduce its annual operational expenses by more than $75 million. This ambitious plan will be executed with an expected one-time implementation cost of $15 million, underscoring the Company’s commitment to operational excellence and fiscal responsibility.
The initiative encompasses a broad range of measures, including operational consolidation, strategic workforce adjustments, and various other cost-saving actions. These measures are aimed at increasing efficiency, improving scalability, and maintaining Plug’s leadership position in the renewable energy industry.
Operational Consolidation
A key element of this initiative is the consolidation of operations, intended to optimize the allocation of resources and streamline processes. This consolidation effort will enable Plug to achieve economies of scale, eliminate redundancies, and enhance productivity across its global operations.
Strategic Workforce Adjustments
As part of its commitment to maintaining a dynamic and efficient workforce, Plug will undertake strategic adjustments to its staffing levels. This decision is made in the interest of preserving the Company’s agility and innovation capacity. Affected employees will be supported with comprehensive severance packages and resources for career transition.
Additional Cost-Saving Measures
In addition to operational and workforce adjustment strategies, Plug will implement a series of additional measures to further reduce expenses. These will include optimizing supply chain management, curtailing discretionary spending, and leveraging automation and digital technologies to enhance operational efficiency.
Commitment to Stakeholders
Plug’s leadership, including CEO Andy Marsh, reaffirms the Company’s dedication to implementing these changes with the highest regard for all stakeholders, including investors, employees, customers, and partners. “The implementation of this strategic plan is essential for Plug to sustain its market leadership and continue to provide innovative renewable energy solutions,” said Andy Marsh, CEO of Plug Power. “We are confident that this strategic realignment will strengthen our competitive position and contribute to our long-term success.”
Looking Ahead
With this initiative, Plug reinforces its commitment to driving the global transition to renewable energy. The expense reduction plan is a critical step in ensuring the Company’s resilience and adaptability in navigating the evolving energy landscape.
About Plug
Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the Company has deployed more than 60,000 fuel cell systems and over 180 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.
With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.
For more information, visit www.plugpower.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, are not guarantees of future performance, and involve certain risks and uncertainties that could cause the Company’s actual results to differ materially from management’s current expectations and the forward-looking statements made in this press release. Those risks and uncertainties include, but are not limited to, the following: the actual savings and costs associated with the strategic initiative described above, the anticipated benefits resulting from the implementation of the Company’s strategic initiative and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Unless required by law, Plug does not undertake any obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.
MEDIA CONTACT
Kristin Monroe
Allison+Partners
plugPR@allisonworldwide.com
