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- Ballard Power Systems (NASDAQ:BLDP) said Thursday it is implementing a global corporate restructuring to reduce corporate spending amid a slowdown in hydrogen infrastructure development and lagging adoption of fuel cells.
- The company expects its restructuring measures to yield an annualized total return operating expense savings of over 30%, with a substantial portion of the annualized savings realized by 2025.
- The cost-cutting measures include a reduction in workforce, operational consolidation and reduced capital expenditures. The cost-cutting measures are not expected to impact product delivery or program execution.
- As part of the restructuring, Paul Dobson and Mark Biznek will step down as the company's chief financial officer and chief operating officer, respectively.
- Dobson will be replaced by Kate Igbalode as the new CFO with immediate effect, while Biznek will be replaced by Lee Sweetland as the new COO from late 2024.
- In connection with the restructuring, the company expects to record a restructuring charge in the third quarter of 2024.
- The company also reiterated its 2024 guidance range of $145 million to $165 million for total operating expenses.
