Danbury-based FuelCell Energy laid off 22% of its workforce on Thursday as it continues a major cost-reduction initiative.
The company announced the layoffs Friday morning in its second-quarter earnings report, blaming “slower-than-expected market investments in clean energy.”
After the job cuts, the company had a total of 426 employees.
FuelCell also said it will recalibrate its Torrington manufacturing facility schedule to align with “contracted demand, rather than forecasted demand.”
In addition, the company is deferring certain compensation and benefit obligations and shifting its focus from developing solid oxide power generation technology.
Instead, the company will double down on its carbonate platform, which uses natural gas and biofuels.
FuelCell’s revenue in the second quarter of 2025 increased 67% to $37.4 million from last year, even as it lost $37.7 million – the same loss it incurred in the second quarter of 2024.
FuelCell said the restructuring plan will cut operating expenses by 30% this year.
Earlier this year, FuelCell announced a 15% cost-cutting initiative, which involved pausing research-and-development spending and reducing overhead.
In November 2024, FuelCell cut about 13% of its workforce as part of a restructuring of its operations in the U.S., Canada and Germany.
Calling the company’s cost management strategy “disciplined,” FuelCell President and CEO Jason Few said Friday he believes that increasing support for natural gas energy will “accelerate adoption of the carbonate platform.”
Few said the cost-cutting measures should “shorten our timeline to expected future profitability by reducing our cost structure, while preserving our long-term commitment to innovation in electrolysis and carbon capture.”
