Ballard Power cuts 85 jobs
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Updated: August 07, 2009 9:50 AM
Fuel cell maker Ballard Power Systems is cutting about 20 per cent of its workforce, eliminating 85 jobs at its Burnaby and Lowell, Mass. locations, the company announced Thursday.
The restructuring will focus Ballard's research and product development on "commercial priorities" as well as reduce administrative support and overhead costs, the company said in a news release.
"While this was a difficult decision given the people implications, this move to a leaner, lower cost organizational structure, is a key step in Ballard's drive to profitability," said president and CEO John Sheridan.
The cuts are expected to cost about $4 million initially for related severance and restructuring, but be offset by savings. The changes will save Ballard about $10 million a year.
The news comes just over a week after the company announced a slim $1-million US profit in its second quarter, due to a one-time accounting gain.
"Our core fuel cell products segment shows continued growth in the second quarter of 144 per cent year over year, however this growth was largely offset by declines in our supporting business segments, reflecting the significant weakness in the automotive sector," said Sheridan on July 28.
Ballard Power Systems is a world leader in the fuel cell industry.
wchow@burnabynewsleader.com
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