ITM Power is to slash a quarter of its workforce as part of a restructuring that will also see the sale or closure of its Motive Joint Fuels venture with Vitol.
New chief executive Denis Schulz said the company has to narrow its product focus and shift from being an R&D company to a business 'capable of volume manufacturing'.
ITM posted revenues of £2mln in the six months to end-October 2022 and losses of £56.5mln after issues with product delays and warranties.
German chemical giant Linde is ITM’s partner and has been bankrolling the electrolyser group’s recent development.
Installation of new 10Mw ITM/Linde modules at RWE (ETR:RWE)’s site in Lingen, Germany is now underway said Schulz, who moved across from Linde to take over as CEO in November.
Most of ITM’s problems stem from ‘immature manufacturing processes, he added, with a much more rigorous approach to managing cost required.
Sorting out Motive Fuel either through a sale or closure would save the business £28mln, he added.
For the full year, Schulz added ITM is likely to post an underlying loss (adjusted EBITDA) of between £85-90mln and finish teh year with cash of in a range of £245m-270mln.
“Our detailed 12-month plan will make ITM a stronger, more focused and more capable company,” he added.
Shares rose 6.4% to 95p.