A German hydrogen technology company has put a halt to new hiring in costly markets as part of sweeping cost-reduction efforts following a significant increase in quarterly losses, the firm announced Tuesday.
Thyssenkrupp Nucera’s financial struggles deepened during the second quarter due to escalating expenses related to hydrogen projects and the cancellation of a pilot program in the United States.
During a company earnings call, Chief Financial Officer Stefan Hahn explained that the cost-cutting initiatives are projected to generate approximately 25 million euros ($29 million) in yearly savings by fiscal year 2026/27. These measures include the employment freeze and cutting work hours in Germany, which equals roughly 40 full-time positions.
The company is also pursuing an additional 15 million euros in annual cost reductions by relocating certain operations to regions with lower expenses and consolidating research, development, and hydrogen product operations.
“Overall, the programme is well underway and will not only mitigate the current market softness, but also enhance our structural efficiency and competitiveness going forward,” Hahn said.
Financial results showed the company posted a net loss of 64 million euros ($75 million) during the second quarter, falling short of analyst projections that had estimated a 32 million euro loss.
Despite the disappointing earnings, which the company had previewed the previous week, Thyssenkrupp Nucera reported improved cash flow performance with 9 million euros in positive free cash flow, a turnaround from the 5 million euro outflow recorded in the same period last year.
