Seattle-based First Mode has announced that 65 of its workers in Washington state are being laid off. This move aligns with a previously announced plan to scale back operations at the clean-tech company.
The layoffs were detailed in a notice filed today with the state’s Employment Security Department. The job reductions account for nearly 40% of First Mode’s workforce in Seattle and Centralia, Washington.
First Mode manufactures powertrain conversion kits aimed at reducing carbon emissions from mining trucks and other heavyweight vehicles, potentially including railway locomotives.
Earlier this year, in January, the company stated that it would shift focus from hydrogen-battery powertrains to hybrid diesel-battery powertrains, necessitating workforce reductions to adapt to changing market conditions.
In January, approximately 20% of First Mode’s U.S. workforce was laid off. Last month, the company revealed plans for additional cuts to prepare for seeking further investment.
“Despite efforts to revisit non-labor costs, significantly reducing recruitment, and terminating most contract labor to avoid headcount reductions, we still are not able to achieve the cost basis required and therefore must propose headcount reductions going forward,” First Mode CEO Julian Soles communicated in an email sent to employees prior to today’s notice.
First Mode’s Washington state facilities include a 40,000-square-foot factory in Seattle’s SoDo district, additional offices and labs in the Seattle area, and a proving ground in Centralia. The company also has offices in Australia, Britain, Chile, and South Africa. According to Soles’ email, the layoff wave will impact all of these countries, with the exception of Chile.
The cutbacks reflect an understanding that the transition to hydrogen power is expected to take longer than initially anticipated, particularly for heavy industry; in the meantime, more cost-effective hybrid solutions are required to address the climate challenge.
There is still optimism for hydrogen: Two weeks ago, officials announced that a regional tech hub known as the Pacific Northwest Hydrogen Association is eligible for up to $27.5 million in federal funding. This funding will support the initial phase of a project aimed at building a hydrogen energy infrastructure in Washington, Oregon, and Montana. The federal funds will be matched by up to $125 million from industry partners, including First Mode.
