US hydrogen fuel cell and truck firm Hyzon could carry out mass layoffs in February if it cannot raise funds or find a buyer, with the firm’s senior team selling off shares.
The company on December 20 issued a Worker Adjustment and Retraining Notification (WARN) Act notice to employees at its Bolingbrook, Illinois and Troy, Michigan facilities.
The WARN Act mandates that companies with 100 or more full-time employees provide a 60-day notice before laying off 50 or more workers at a single site.
Over the past week, Hyzon’s CEO, Chief Legal Officer, Chief Financial Officer and more, have sold off large portions of their shares in the company, signalling a lack of confidence in the firm’s future or a need for liquidity.
In 2024, Hyzon executed a reverse stock split to reduce its number of shares and boost its share price after facing Nasdaq delisting due to its shares falling below $0.10.
Hyzon cited its “inability to raise funding and the future uncertainty relating to the availability of government subsidies,” nodding to the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).
HVIP provides point-of-sale discounts for fleets purchasing eligible vehicles, including those powered by hydrogen. However, funds under the scheme are currently closed to new voucher requests.
Hyzon believes the uncertainty and fundraising woes have caused “certain of its customers to slow down or suspend their purchasing decisions.
“If the company cannot raise funds or find a buyer, it is expected that the reduction in force will be completed in February 2025,” the notice read.
By September 30, 2024, the company’s cash and cash equivalents stood at $30.4m, following a raise of $3.8m in July.
Hyzon has faced a long period of financial turmoil. Between Q2 2022 and Q1 2023, the firm was out of compliance with listing rules after not posting its results while it investigated its revenue recognition for deliveries in China and Europe.
Having found incorrect recognition for the deliveries of numerous trucks across the region, Hyzon regained compliance with Nasdaq rules, emerging from the ashes with a new executive team and a $25m US Securities and Exchange (SEC) penalty.
Read more: The year that rocked and reshaped Hyzon Motors
Despite setting out with promises of focusing on hydrogen fuel cell development and a streamlined truck lineup, the company continued to face its woes.
In June it said it would back out of Dutch and Australian operations to refocus on North America, despite having launched an Australian vehicle platform just months earlier. The move would see it incur $17m of exit costs.
Read more: Hyzon faces $17m exit costs from EU and Australian hydrogen truck markets
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