U.S.-based hydrogen fuel system manufacturer Hyzon has announced it could be forced to conduct mass layoffs in its workforce if it cannot raise funds or find a buyer following what it has labelled as “future uncertainty” in the availability of government subsidies.
The notice, which was issued in late December, commenced a 60-day notice period that must be given prior to idling operations and laying off employees under the WARN Act.
The WARN Act mandates the notice period for companies with 100 or more full-time employees before laying off 50 or more workers at a single site. The notice applies to three facilities across the American state of Illinois.
“If the company cannot raise funds or find a buyer, it is expected the reduction in force will be completed in February 2025,” a company statement says.
“Hyzon cited its inability to raise funding and the future uncertainty relating to the availability of government subsidies, most notably the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, which the Company believes has caused certain of its customers to slow down or suspend their purchasing decisions.”
This step is the latest in what has been a difficult time for Hyzon. The company pulled out of its Australian and Dutch markets in June 2024 to refocus its operations on North America.
The move came after Hyzon had launched its 200kW prime mover in Australia in March, just three months prior to pulling out of the market.
“Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market,” CEO Parker Meeks said at the time.
The decision for Hyzon to pull its international operations was expected to incur costs of roughly US$17 million.
Meeks and other top executives at the company have liquidated their holdings in Hyzon, with the meeting that could result in the company’s dissolution currently set for February 13.
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