FuelCell’s CEO, Jason Few, emphasized that the restructuring will position the company to leverage demand in areas like data centers, AI, and grid resilience.

The company cited slower-than-expected investments in green energy projects due to uncertainties around government policies. | Representative Image via Vecteezy

Ramakrishnan M·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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Shares of FuelCell Energy Inc. ($FCEL) saw a sharp reversal on Friday, turning negative after the company announced a global restructuring plan, which includes cutting 17% of its workforce.

Despite an initial surge of nearly 35% to an intraday high of $9.45, the stock fell over 7% by late afternoon, with weekly performance set to end in the red.

The fuel-cell technology firm, which employs 591 people as of Oct. 31, aims to reduce operating costs by 15% and refocus on its core technologies amid challenges in the clean energy sector.

The company cited slower-than-expected investments in green energy projects due to uncertainties around government policies.

Notably, the recent U.S. presidential election win by Republican candidate Donald Trump has raised concerns across the green energy industry. Trump’s transition team reportedly plans to eliminate the $7,500 electric vehicle tax credit, a move that could stymie clean energy incentives.

FuelCell’s CEO, Jason Few, emphasized that the restructuring will position the company to leverage demand in areas like data centers, AI, and grid resilience, despite broader industry headwinds.

He added that the company is poised to capitalize on power shortages, high-voltage transmission needs, and delays in centralized power projects.

The restructuring will not impact FuelCell’s existing customer support or its carbonate manufacturing capabilities in Torrington, Connecticut.

The company expects to take one-time accounting charges related to the layoffs in Q4 FY24 and Q1 FY25 but maintains that its cash reserves remain robust, exceeding $300 million as of Oct. 31.

The stock faced additional volatility this week due to a one-for-30 reverse stock split, which followed two previous reverse splits in May 2019 and December 2015, aimed at boosting the share price to meet Nasdaq’s listing standards.

However, the company’s long-term struggles continue, with a history of unprofitability and cash flow challenges.

Year-to-date, FCEL has lost more than 85% of its value.

Retail sentiment on Stocktwits remained ‘neutral’ following the restructuring news, with message volume hitting ‘extremely high’ levels.

The company is scheduled to provide further details on its restructuring plan and financial performance during its Q4 earnings call on Dec. 19.

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