Plug Power (NASDAQ:PLUG) stock opened in the green today after the company announced a plan that would reduce its annual operational expenses by $75 million. Plug expects to incur a one-time $15 million implementation cost to initiate the plan.

The plan includes four pillars: operational consolidation, strategic workforce adjustments, additional cost-saving measures and a commitment to shareholders.

“The implementation of this strategic plan is essential for Plug to sustain its market leadership and continue to provide innovative renewable energy solutions,” said CEO Andy Marsh. “We are confident that this strategic realignment will strengthen our competitive position and contribute to our long-term success.”

PLUG Stock: Plug Announces Plan to Reduce Annual Expenses by $75 Million

Plug Power seeks to consolidate its operations in order to improve its allocation of resources and streamline processes. The green hydrogen company believes that operational consolidation will lead to “economies of scale” and increased efficiency.

Strategic workforce adjustments is a euphemism for layoffs. Plug added that it would support affected employees to the fullest extent.

For cost-saving measures, the company plans on improving its supply chain, reducing discretionary spending and utilizing automation technologies to increase operational efficiency. Finally, Plug announced that these changes would be implemented in order to increase shareholder value.

Plug operates in a cost-intensive market in regards to infrastructure and transportation, so it isn’t surprising to hear that the company wants to cut costs. On top of that, the company has failed to turn a profit and last reported a GAAP EPS loss of 47 cents and a net loss of $283.47 million.

This plan comes as Plug works to increase production at its plants in Georgia and Tennessee. Production at the Georgia plant, which is the largest liquid green hydrogen plant in the U.S., began last month. The plant took 18 months to complete and is designed to produce 15 tons of liquid electrolytic hydrogen per day.

Meanwhile, production at Plug’s Tennessee plant resumed last week following design improvements. Plug expects these two plants to reduce the average cost of delivered hydrogen, which would increase fuel margins.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.