Plug Power just signalled layoffs: find out more

Plug Power Inc (NASDAQ: PLUG) is trading up in premarket on Wednesday after announcing a plan to lower its annual operational costs by over $75 million

$PLUG to cut unspecified number of jobs

The hydrogen fuel cells company expects implementation of that initiative to cost it $15 million (one-time).

$PLUG also confirmed that a yet to be determined number of employees will lose jobs as part of the cost cut programme. According to Andy March – the chief executive of Plug Power Inc:

Note that the alternative energy company is expected to lose 31 cents a share in its current financial quarter versus 38 cents per share a year ago.

Is Plug Power stock worth buying?

Plug Power will resort to operational consolidation, holding back on discretionary spending, and optimising supply chain management as well to cut costs, as per its press release on Wednesday.

The news arrives just weeks after the Nasdaq-listed firm said it will “use attrition to naturally lower payroll costs”.

$PLUG has also recently completed a term-sheet negotiation with the U.S. Department of Energy for a loan facility worth $1.6 billion as Invezz reported here.

Shares of Plug Power Inc have gained significantly since mid-January but our market analyst Crispus Nyaga does see the possibility that they will continue to climb to around the $6.0 level.