Hyzon to Begin Layoffs in February Without More Funds, Buyer
Hyzon expects to start laying off U.S. employees in February if the hydrogen fuel cell electric truck maker cannot raise more funds or find a buyer, the company said Dec. 20.
Bolingbrook, Ill.-based Hyzon issued Worker Adjustment and Retraining Notification Act notices to employees in Illinois and Michigan on Dec. 20, providing the 60 days’ notice to staff required by federal law.
The company began warning in June that layoffs in the U.S. and a new owner were a possibility and that more funds were needed even as the start of serial production of its Class 8 tractor approached.
Hemorrhaging cash, Hyzon first hired bankers at PJT Partners in June to explore the company’s options. Dutch and Australian operations were shuttered swiftly after the bankers were engaged, and Hyzon promised to focus on its core North American business.
The retrenchment has not been enough, even as monthly cash burn was reduced from $15 million to around $6.5 million and $4.5 million was raised in July through an equity sale.
It's #WhyHydrogenWednesday! Ever wonder how hydrogen + fuel cells create power at scale? They convert hydrogen into clean electricity, ensuring reliable energy. 🚀 See how we're leading the revolution at https://t.co/3v1tgmsgJd.#EnergyForToday #EnergyTransition #Hyzon pic.twitter.com/5tn8UMWA4G — Hyzon (@hyzon) December 18, 2024
Hyzon said an inability to raise further funding and future uncertainty relating to the availability of government subsidies, particularly the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, led to the WARN notifications and prospect of employees losing their jobs.
The availability of the subsidies caused certain customers to slow down or suspend their purchasing decisions, Hyzon said.
Although on Dec. 17 the company announced South San Francisco Scavenger Co. would be buying a refuse collection truck and a Class 8 200-kilowatt hydrogen fuel cell tractor, it cautioned the deals were subject to the availability of subsidies in the Golden State.
The order from South San Francisco Scavenger was the second for a refuse collection vehicle, which is built in partnership with New Way Trucks, a garbage truck body manufacturer. The first was from GreenWaste in October.
That month saw the company begin series production in Bolingbrook of the 200-kW fuel cell system set to power its trucks. The Bolingbrook facility can produce 700 fuel cell systems a year on a three-shift basis.
Hyzon began series production of its 200-kW Class 8 tractor Sept. 16. Production is taking place at a Fontaine Modification facility in Charlotte, N.C.
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The company provides Fontaine with kits for the fuel cell system, battery packs and hydrogen storage systems. Fontaine adds these onto vehicle chassis. The base chassis for Hyzon’s truck is a Freightliner Cascadia in two day-cab variants.
However, losses have continued to pile up. Hyzon posted a net loss of $41.32 million, or $7.74 per diluted share, in the third quarter of 2024. In 2023, Hyzon posted a $184 million loss.
Hyzon’s cash, cash equivalents and short-term investments on hand at the end of Q3 totaled $30.4 million, compared with $55.1 million three months earlier and $112.3 million at the start of the year.
A Hyzon representative was not immediately available for comment Dec. 20 on how many employees’ jobs were at risk or how much funding was being sought.
